2nd Isa

babe-ruth

Hi, apologies if this has already been covered but for some reason i can't get my head around this one so simple replies please:o

I have opened a Santander isa for this year and put in my allowance. I also currently have an isa with post office with previous years isa's in. The rate on the post office isa has now dropped to less than 1% so my question is :-
Am i allowed to open another isa this year to transfer the previous years into?

Hope that makes sense.

Thanks

Archi_Bald

If you find an ISA provider that allows transfers in, you can ask them to transfer your PO ISA. This could be your Santander ISA if the terms allow a transfer in.

You must not put new money into more than one cash ISA in the same year.

As an aside, you have not used your 2014-15 allowance in full yet since you won't get all of it until July 1.

babe-ruth

Hi Archibald, i don't want it to go into the Santander Isa because after July it will be fixed for 2 years and i won't be able to get any money out without penalties.

I suppose i wanted to know if i can open two isas in the same year. One to put this years allowance and the other to transfer previous years allowances into.

Someone told me that i cannot open two in the same year. When i explained that one was for this years allowance and the other for a transfer they still thought that it was not allowed

badger09

babe-ruth wrote: »

Hi Archibald, i don't want it to go into the Santander Isa because after July it will be fixed for 2 years and i won't be able to get any money out without penalties.

I suppose i wanted to know if i can open two isas in the same year. One to put this years allowance and the other to transfer previous years allowances into.

Someone told me that i cannot open two in the same year. When i explained that one was for this years allowance and the other for a transfer they still thought that it was not allowed

That someone is wrong

You can open another ISA as a home for your previous year's Post Office ISA funds. Make sure you choose one which allows transfers in, then ask the new provider to arrange the transfer for you.

What you can't do, is pay new money into 2 cash ISAs at the same time.

babe-ruth

Thank you Badger, much appreciated. Now to look for the best place to put it

badger09

babe-ruth wrote: »

Thank you Badger, much appreciated. Now to look for the best place to put it

You're welcome.

Now regarding the best place to put it - obviously I don't know how much you have saved in your PO ISA, but... an ISA is not necessarily the best place to save at the moment.

There are lots of current accounts offering much better interest, even after tax is deducted, than ISAs. Have a read around the forum, not just Savings & Investments, but also Budgeting & Bank Accounts