Opening fix ISA for transfer but keep current ISA account for further deposit?

horngkai

I am currently with natwest which the rate is dropping soon. I am thinking about opening a fix ISA whilst keeping a tiny amount in the Natwest account to keep it open as the rate, despite having dropped down, is still not too bad. I am not planning to put in my ISA limit for this year until maybe towards the end of the tax year which fix account will not allow me to do. Can I still put money into my Natwest account or can I open another ISA account in the same year as the fix account to put in the money at the end of tax year?

Thanks for your help.

badger09

horngkai wrote: »

I am currently with natwest which the rate is dropping soon. I am thinking about opening a fix ISA whilst keeping a tiny amount in the Natwest account to keep it open as the rate, despite having dropped down, is still not too bad. I am not planning to put in my ISA limit for this year until maybe towards the end of the tax year which fix account will not allow me to do. Can I still put money into my Natwest account or can I open another ISA account in the same year as the fix account to put in the money at the end of tax year?

Thanks for your help.

As far as previous year's ISA subscriptions are concerned, you can split them as you wish. So, you can transfer some into a fixed rate/fixed term and leave some in the Natwest ISA if that's what you want.

You can pay this year's allowance up to £5760 into your existing Natwest ISA, or open a new one. What you can't do is pay into your Natwest ISA and a new one, at the same time.

Remember to use your new provider's transfer process, whatever you decide to do.

pqrdef

If you're transferring money out of the NatWest ISA and you want to keep it open, make sure you specify a partial transfer and the specific amount. There's a danger that they'll think you want to move the whole lot and close the account.

Also, make sure you only put old money into the fixed ISA. Don't be tempted to chuck in a bit of new money at the same time, or you're knackered.

If you pay new money into the NatWest ISA before you do the transfer, things get muddy. Then they've got two choices - they can include all the new money in the transfer, or none of it. You've got to make sure they pick the right option. Good luck with that.