Cash ISA transfer and increased rates

In_for_a_penny

Hello,

I transferred my original cash ISA from the Cheshire BS to a Virgin Cash ISA in March of this year (2014). Since then, I have not put any additional funds into the new Virgin ISA (currently at 1.61% interest).

As the new limit now allows up to £15000 per financial year, I am unsure whether to put more into the Virgin ISA or am I allowed to open another ISA with a different provider (and possibly a better rate)?

I’m not entirely sure (still) how ISA’s work with regard to where the interest is paid if you have more than one ISA.

Any advice gratefully received.

Thank you.

Lokolo

As you have not deposited any money this tax year (April 6th-April 5th) you are free to open a completely new ISA and deposit new money in that. As well as keeping your existing ISAs seperately.

Interest has nothing to do with subscriptions. Interest is paid into the account that is earning it and has nothing to do with your £15k limit.

In_for_a_penny

Thanks for your prompt reply. If I do open another CASH ISA with a different provider, do both accounts accrue interest or is it just the newly opened account that gains interest from there on?

Lokolo

Of course both do. Its an account that pays interest, just like an ordinary bank account.