Another ISA question - Confused

sarar

I have a couple of ISA's with NatWest one which pays better interest then the other and it is this one I add my allowance to every year. My question is, am I better off to open a new ISA every tax year or just keep adding to the ones I already have?

Thanks, the more I read the more confused I seem to be getting.

Stubod

An Isa is just a name for a tax free wrapper. You are allowed one per year, and can put in £5,640 (Cash). It doesn't matter if you add this money to an exisiting ISA, or open a new one....best to put it where it will earn the most interest. NB Some banks will not allow you to add to an exisiting ISA, so you will have to open a new one. Each one has its own terms and conditions. Some allow transfers, some do not..

sarar

Stubod wrote: »

An Isa is just a name for a tax free wrapper. You are allowed one per year, and can put in £5,640 (Cash). It doesn't matter if you add this money to an exisiting ISA, or open a new one....best to put it where it will earn the most interest. NB Some banks will not allow you to add to an exisiting ISA, so you will have to open a new one. Each one has its own terms and conditions. Some allow transfers, some do not..

Thanks Stubod, I wasn't sure if it was better to open a new one or just keep adding as I have done for years.

JustLikeThat

Unless I am misreading your original post, you seem to have a 'stray' ISA with Natwest that you are just leaving alone despite poorer interest than the other Natwest ISA you have been using for several years. If this is so, why haven't you asked for it to be added to your main ISA? Is there some rule preventing this?

Gromitt

Stubod wrote: »

An Isa is just a name for a tax free wrapper. You are allowed one per year, and can put in £5,640 (Cash).

Since it's now the 2013/14 Tax year, you can put in £5760 in cash.

sarar

JustLikeThat wrote: »

Unless I am misreading your original post, you seem to have a 'stray' ISA with Natwest that you are just leaving alone despite poorer interest than the other Natwest ISA you have been using for several years. If this is so, why haven't you asked for it to be added to your main ISA? Is there some rule preventing this?

I was thinking of adding the money in the ISA with a poorer interest rate into the Isa Plus but thought i'd read or heard it was better to have several ISA's, but wasn't sure.

david78

You should consolodate them if the T&Cs allow you to do it. Ask Natwest to transfer it for you.