isa confusion

bzc

Hi I have an ISA with Virgin this year and am currently paying a small sum each month via direct debit, if I continue to do this into the same ISA in next years term will this count as paying into a new isa and stop me from opening or transferring to another if this current rate drops.

Can you only pay into one isa each year

Thanks

dzug1

If you continue to pay into it it will count as a new ISA

Ed-1

bzc wrote: »

Hi I have an ISA with Virgin this year and am currently paying a small sum each month via direct debit, if I continue to do this into the same ISA in next years term will this count as paying into a new isa and stop me from opening or transferring to another if this current rate drops.

If it's an instant access ISA (which it sounds like as you're making further deposits) then you can still transfer to another ISA but all of the money deposited in 2014/15 must be transferred. Then you can continue to contribute to the ISA you've transferred to up to the 2014/15 allowance (initially £5940 rising to £15000 on 1st July).

bzc wrote: »

Can you only pay into one isa each year

Yes - one cash and one stocks and shares.

bzc

thanks

so if I still pay into it and then transfer in 2014/15 year does that still count as only one isa, its not paying into the Virgin one then after transfer paying into A.N Other provider

Ed-1

bzc wrote: »

thanks

so if I still pay into it and then transfer in 2014/15 year does that still count as only one isa, its not paying into the Virgin one then after transfer paying into A.N Other provider

Yes. You need to keep all new money in one tax year together. So you can continue to pay into an existing ISA, transfer all the money put it in the 2014/15 tax year and then continue paying in as it still counts as one ISA.

jimjames

I couldn't see anything that said if it was a S&S ISA with Virgin or cash.

The answer is the same for them both but if it is a S&S ISA you need to be aware that their charges are about 4x higher than the best you can get.