can you only hold one cash ISA each year

lucadobe

I have read you can hold more than one cash ISA as long as they are from different years, does that mean you can only have one up and running that you may transfer around from one source to another depending on the rates, or each year you can open another as long as you only deposit in one of them...so in theory in 3 years you could have 3 Isa's with money in?:(

Shaolin_Monkey

You can only subscribe to one cash ISA per tax year. Subscribe means pay money in to an ISA, as opposed to a transfer from another ISA, which is not classed as a subscription. Once the money is in the ISA it can be transferred to other providers but you must use the proper transfer form rather than simply withdraw the cash. There is no limit to how many you can have at the same time.

xylophone

Luca has an ISA he took out in the tax year 10-11 (a)

He has another ISA that he took out in the year 11-12. (b)

He took out another in the current tax year. (c)

He can transfer all or any part of (a) to another provider and the same with (b).
If he wishes to transfer (c) in this tax year he must transfer the whole.

In the next tax year he can transfer the whole or any part of (c).

Or he can leave any or all of them with the same providers.

Don't forget that any transfer must be handled by the new provider.

innovate

and don't forget that you need to check the interest rates for old ISAs. You may only get diddlysquat, so you'd want (a new provider) to transfer asap.

lucadobe

Shaolin_Monkey wrote: »

You can only subscribe to one cash ISA per tax year. Subscribe means pay money in to an ISA, as opposed to a transfer from another ISA, which is not classed as a subscription. Once the money is in the ISA it can be transferred to other providers but you must use the proper transfer form rather than simply withdraw the cash. There is no limit to how many you can have at the same time.

So if i had say £12.000 in an Isa i opened 2 years with say Santander, then after April 6th this year i opened another with the £5,700 allowance with say Nationwide i could open up a new Isa every year then?

MoneySaverLog

lucadobe wrote: »

So if i had say £12.000 in an Isa i opened 2 years with say Santander, then after April 6th this year i opened another with the £5,700 allowance with say Nationwide i could open up a new Isa every year then?

Yes but as others have said, rates will change so you might like to look at opening another ISA to transfer the money from Santander into. Using the new providers transfer process of cause.

lucadobe

MoneySaverLog wrote: »

Yes but as others have said, rates will change so you might like to look at opening another ISA to transfer the money from Santander into. Using the new providers transfer process of cause.

yes i know that has to be done otherwise it no longer becomes tax-free...i notice also that some do not accept transfered amounts. Would a new provider ( one that accepted transfers ) accept several several Isa transfers then in one go?

MoneySaverLog

Yes it should just be a case of filling in a transfer form for each ISA you wish to transfer in.

innovate

MoneySaverLog wrote: »

Yes it should just be a case of filling in a transfer form for each ISA you wish to transfer in.

And also

1. obtain proof that all the forms got delivered to the new provider
2. check they really do transfer all of them

There have been several reports that some providers received two or three forms in the same envelope but for unfathomable reasons just processed one or two of them.


It's a good idea even for just one transfer form to have proof of delivery. I usually hand my form into a Branch and ask for a stamped and signed copy. They can then send the original through their internal mail to their ISA transfer team.

jamesd

lucadobe wrote: »

So if i had say £12.000 in an Isa i opened 2 years with say Santander, then after April 6th this year i opened another with the £5,700 allowance with say Nationwide i could open up a new Isa every year then?

Yes. You could also open twelve ISAs and transfer £1,000 or more or less from the Santander ISA into them. In addition to whatever new money you pay into one during the current tax year.