old isa with very little in, can I have a new one?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 616 views
BabyDragon_2BabyDragon_2 Forumite
61 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi all,

I have had an isa for a few years and put very little in it. I have now got some money to put into an isa but want a better interest rate than my exisiting isa gives - can I open a new isa and put 3K into it?

Thanks in advance, I just want to be sure :o
This site is just excellent :T

Replies

  • Just found the answer in another thread sorry - yes I can - wahoo!

    Next question then - can I put 1500 in each? Play it safe etc?

    and which is better an isa @ 5.6% interest added monthly or 6% added annually??
    I think it.s the annual one to my suprise as I wondered if the compounding would work out better but I don't think it does on 3K?
    Can anyone tell me for sure please?
    This site is just excellent :T
  • debbie42debbie42 Forumite
    2.6K Posts
    BabyDragon wrote: »
    Just found the answer in another thread sorry - yes I can - wahoo!

    Next question then - can I put 1500 in each? Play it safe etc?

    and which is better an isa @ 5.6% interest added monthly or 6% added annually??
    I think it.s the annual one to my suprise as I wondered if the compounding would work out better but I don't think it does on 3K?
    Can anyone tell me for sure please?

    You can't add any more to your old ISA: once the year is up, that's it. You can transfer them, as long as they are kept within the ISA wrapper.
    To compare rates easily, check the published AER, as this should account for the interest timings.
    Debbie
  • masonicmasonic Forumite
    15.9K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
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    BabyDragon wrote: »
    Next question then - can I put 1500 in each? Play it safe etc?
    As Debbie says, you can't contribute to more than one ISA in the same tax year, so you will have to choose one or another.

    When the rate is around 5%, the effect of compounding adds just over 0.1% onto monthly interest rates, but most accounts quote the AER (because it's higher), which already takes compounding into account.
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