Pay Into Old or New ISA?

Apastron

Trying to search for similar threads in this forum is a nightmare so I'll start my own.

I have a fixed rate ISA containing roughly £21 000 (at 3.6% - those were the days) that has now dropped to 1%. As ISA interest rates are twelve shades of monkfish at the moment, I think it best to wait it out to see if someone introduces a respectable product into the market (wishful thinking?).

So, I have my old ISA and I can max it out today. Is it advisable to pay this year's allowance into the 1% and then switch to a better product when I deem one good enough, or should I wait for this ethereal product to turn up, transfer, and then pay in?

Thanks for any advice in advance.

xylophone

Open an ISA for the current tax year with Coventry BS at 2.6% and arrange for a transfer of the old isa to the Cheshire?
http://www.moneysavingexpert.com/savings/best-cash-isa

Apastron

I didn't even know you could do that...

So, I could:

>Open an account with Cheshire BS (I'm not considering a post ISA so it would be someone else - this is the 21st century)
>Transfer in my old ISA

But from the wording I assume that the minimum deposit of £1000 would have to come out of this years allowance?

Then:

>I could open an account with Coventry BS and pay in the remaining £4760

Is this correct? I didn't think you were allowed to open more than one ISA in a year?

innovate

Apastron wrote: »

I didn't think you were allowed to open more than one ISA in a year?

As has been posted hundreds of times, you can open as many ISAs any time you like.

You must not deposit new money in the same financial year into more than one ISA. But if your ISA is transferable, you can ask a new provider to look after it for you any time you like, by transferring your entire current year's ISA.