Confused, please help

daveyboy27

I thought I was quick clued up on ISA's, but this has stumped me.

I have an ISA taken out in a 2012/2013 with a good rate and bonus ending later this year.

Can I put my new 2013/14 allowance in there now too and then open a new ISA with whoever has the best rate later in the year? (I'd read you can only open one cash ISA a year, so would me putting my money in, be classed as me opening a 2013-14 cash ISA?) Therefore preventing me from transferring to a better rate later in the year?

Or must I open a new ISA, with whoever has the best rate now and then transfer my 2012/13 ISA in once my bonus rate ends?

david78

You can only use your allowance to add money to 1 account.

You can:

(1) add your new money to the existing cash ISA.

OR

(2) add your new money to a new cash ISA and leave the old one where it is.

OR

(3) add your new money to a new cash ISA and transfer the old one to it as well


You can always open a second ISA just to transfer into. It doesn't count as contributing to more than one ISA. So with (1) you can always do a transfer later on.

badger09

david78 wrote: »

You can only use your allowance to add money to 1 account.

You can:

(1) add your new money to the existing cash ISA.

Assuming it allows further deposits - if its a fixed term/fixed rate ISA, it probably doesn't

OR

(2) add your new money to a new cash ISA and leave the old one where it is.

OR

(3) add your new money to a new cash ISA and transfer the old one to it as well

Assuming your new ISA allows transfers in, and there are no penalties for transferring the 'old' one out

You can always open a second ISA just to transfer into. It doesn't count as contributing to more than one ISA. So with (1) you can always do a transfer later on.

Hope that's not stumped OP even more