new & transfer ISAs

teleaddict

Can somebody quickly clarify for me.

Can I open an ISA for this year purely to transfer an old ISA into (to gain a better rate), then make no further deposits and then open an ISA to make cash deposits into for this year (again getting the best rate for new cash)?
thanks in advance
T

ColdIron

Yes but why not put all your cash into the one ISA that is paying the best rate?

mundibananas

I'm guessing because the ones with the best rates don't accept transfers in?

ahll

I think I am in a similar position. I have an exsisting ISA where the rate is good until Nov 2013.I realise the rate will plummet in Nov.

But for this year the best rate ISA at 2.6% but it does not allow transfer in of existing ISA. So I could open a new one for 2013/14 at 2.6% now then from what you are saying in Nov I can open another and transfer my existing one into a new one to get a better rate. Do I understand this right ?

I did think you could only open one ISA a year but wouldn't this be 2 ? Even though my allowance for this year will be in only one of them.

xylophone

A transfer of the previous year's ISA is not a new subscription- thr rule is that you can only subscribe to one cash isa in the tax year.
http://www.hmrc.gov.uk/isa/faqs.htm

saintalan

xylophone wrote: »

A transfer of the previous year's ISA is not a new subscription- thr rule is that you can only subscribe to one cash isa in the tax year.
http://www.hmrc.gov.uk/isa/faqs.htm

At the risk of being a pedant, am I right in thinking you could subscribe to one, then transfer it to another and subscribe further to it if not up to your limit all in the same year?

i.e. you can only have one active ISA in the current year.

Thanks

Alan

teleaddict

thanks for the replies folks.
ColdIron, It's like mundibananas has said, theres a better rate for new cash as opposed to transferring. Also the tranfer ISA is postal only, which I believe is not quite "Easy Access" (having to wait for the postal service), where an online account will be.