Can you open both a cash and stocks/shares ISA?

chippy_250

Hi there, I've already opened a cash ISA this year. My questions are:

1. Can I open a Stocks and shares ISA and a cash ISA within the same financial year?

2. If so, would my limits be combined or would they be separate? For example, could i put £5,640 in the cash and £11,280 in the stocks which would be a total of £16,920 across both.
Or would my limit be £11,280 in total?

Thanks guys.

dunstonh

1 - yes

2 - £11,280 is the overall maximum. Anything you put in the cash ISA is deducted from that £11,280 to leave you what you have left for S&S ISA.

innovate

Yes you can have both in the same year.

Your total allowance is £11,280 this financial year.

Of this allowance,up to £11,280 can go into a S&S ISA, and a maximum of £5,640 into a cash one.

http://en.wikipedia.org/wiki/Individual_Savings_Account

chippy_250

Ok thanks guys.

Can I also ask what happens to any old ISA's that I may have?

E.g. an ISA taken out in the 2011/2012 tax year. Is the money within this account still tax free or would I have to transfer this to a new account?

kidmugsy

chippy_250 wrote: »

Ok thanks guys.

Can I also ask what happens to any old ISA's that I may have?

E.g. an ISA taken out in the 2011/2012 tax year. Is the money within this account still tax free or would I have to transfer this to a new account?

It remains tax free: you can leave it alone if you like, or you can transfer it if you want. Money that's already in an ISA from previous tax years isn't a contribution in this tax year. Be careful to let your providers do any transfer - if you take the money out yourself that's a withdrawal, not a transfer.

innovate

In most cases, it is a bad idea to leave the money in old ISAs since the interest rate will most likely have dropped significantly.

You should find an ISA that accepts transfers-in, and then ask the provider of that new ISA to transfer the money for you. That way, you get better interest, and all interest on the money will remain tax-free.

The 'transfer' ISA may or may not be the ISA you deposit new money for the new year into - you could have one just for the transfer of your old money, and another one for your new money. But it could also be the same - whatever suits you best.

jimjames

innovate wrote: »

In most cases, it is a bad idea to leave the money in old ISAs since the interest rate will most likely have dropped significantly.

That specifically refers to cash ISAs. With share ISAs there isn't the same need to constantly move them to get the best deal - in fact it is generally better to leave them if they are with a fund supermarket and just change the funds inside as and when you need to - but the ISA itself remains tax free.