quickie on ISA's - can anybody answer please?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
4 replies 809 views
theLearner_3theLearner_3 Forumite
73 Posts
Part of the Furniture Combo Breaker
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
hi all,

i've currently got a Natwest Mini Cash Isa that pays 5.3%AER on my £3200 balance.

£3000 of which was deposited in the 2006-2007 tax year and i deposited £200 of birthday money in May 2007. Because I deposited £200 into this ISA within the current 07-08 tax year, does this mean that i can only deposit any new savings into this Natwest ISA rather than open a better-paying new one in the current tax year?

Or is it OK to transfer the whole £3200 into a single better-paying ISA (looking at the Yorkshire BS e-ISA)?

any help will greatly appreciated :T

Replies

  • robnyerobnye Forumite
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    as far as i understand it. you can only pay into one isa within a financial year, also the limit i believe is £3000 per tax year

    but you can transfer the money from one isa to another, as long as your total payments dont exceed the tax year limit
    smile --- it makes people wonder what you are up to.... ;) :cool:
  • jem16jem16 Forumite
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    theLearner wrote: »
    hi all,

    i've currently got a Natwest Mini Cash Isa that pays 5.3%AER on my £3200 balance.

    £3000 of which was deposited in the 2006-2007 tax year and i deposited £200 of birthday money in May 2007. Because I deposited £200 into this ISA within the current 07-08 tax year, does this mean that i can only deposit any new savings into this Natwest ISA rather than open a better-paying new one in the current tax year?

    Yes it does unfortunately. By paying £200 into the Natwest ISA this tax year you have committed to them. You can not open a brand new one like NS&I.
    Or is it OK to transfer the whole £3200 into a single better-paying ISA (looking at the Yorkshire BS e-ISA)?

    any help will greatly appreciated :T

    Yes you can do this. If you transfer the £3200 from natwest to YBS you will still be able to desposit the balance of the £2800 into the YBS also.
  • theLearner_3theLearner_3 Forumite
    73 Posts
    Part of the Furniture Combo Breaker
    robnye wrote: »
    as far as i understand it. you can only pay into one isa within a financial year, also the limit i believe is £3000 per tax year

    but you can transfer the money from one isa to another, as long as your total payments dont exceed the tax year limit

    thanks for confirming this
  • theLearner_3theLearner_3 Forumite
    73 Posts
    Part of the Furniture Combo Breaker
    Yes you can do this. If you transfer the £3200 from natwest to YBS you will still be able to desposit the balance of the £2800 into the YBS also.[/quote]

    thanks for clarifying this for me, i can get a new ISA sorted now to transfer the lot into :j
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