Opening Multiple ISAs

BIRDMAN

Dear Forum,

I would like to transfer my (mid-sized) savings pot to the 2% Clydesdale fixed rate account. Am I right in thinking that the fixed term dictates that you cannot add additional funds to this? In this instance, I believe my best course of action would be to simply open a Post Office 1.5% Premier cash ISA to which I can then add additional savings throughout the year. Is it possible to open multiple ISAs in a tax year when one has been opened through a transfer, and not supplemented with additional funds?

The regular savings ISAs seemed to have multiple year terms in which I am not interested with the potential prospect of a rate rise within the year.

Many thanks for any response to this very good problem....

ColdIron

BIRDMAN wrote: »

with the potential prospect of a rate rise within the year.

Highly unlikely IMO, we haven't yet plateaued on the falls yet

badger09

BIRDMAN wrote: »

Dear Forum,

I would like to transfer my (mid-sized) savings pot to the 2% Clydesdale fixed rate account. Am I right in thinking that the fixed term dictates that you cannot add additional funds to this? In this instance, I believe my best course of action would be to simply open a Post Office 1.5% Premier cash ISA to which I can then add additional savings throughout the year. Is it possible to open multiple ISAs in a tax year when one has been opened through a transfer, and not supplemented with additional funds?

The regular savings ISAs seemed to have multiple year terms in which I am not interested with the potential prospect of a rate rise within the year.

Many thanks for any response to this very good problem....

I don't know the T&C of the specific Clydesdale ISA, but generally Fixed term/fixed rate ISAs allow only a short time to pay in, so are not suitable if you want to keep paying in throughout the year.

You can indeed transfer previous year's ISA subscriptions (ask the new ISA provider to do it) into one ISA and open another into which you pay new money. What you can't do is pay into both at the same time.

colsten

BIRDMAN wrote: »

The regular savings ISAs seemed to have multiple year terms in which I am not interested with the potential prospect of a rate rise within the year.

I don't know of any regular savings ISA that locks you in for multiple years. Also, regular savings accounts don't lend themselves to a lump sum deposit, which seems what you are after.

If you don't want to be locked in, why are you looking at ISAs at all? You can get much better interest in current accounts, for up to £50,000.

BIRDMAN

Thanks Colsten,

Which current account pays a competitive rate up to £50,000? The highest I could find was the Santander 123, with 3% at £20,000. The TSB and Nationwide accounts offer great rates, but at very limited amounts....

Perhaps I was being far too optimistic about the prospect of a rate rise, and wanted to keep growing my TAX free savings bundle. I guess with the increased amount you can pay into ISAs year on year, this is not such an issue - maybe,even, the ISA is a dying breed in the face of these superpowered current accounts...

jimjames

As of next year for the average person a cash ISA will be virtually pointless when you can have £1000 interest tax free from any account outside.

Eco_Miser

BIRDMAN wrote: »

Which current account pays a competitive rate up to £50,000?

None of them. However, you can get 3% or more on £50,000 (nearly triple that for a couple) by using all of them.

Rollinghills

I don't think cash ISAs are a dying breed just yet. The 1,000 allowance is for basic rate taxpayers, otherwise only 500. That sounds a lot now but who knows where rates will be in the future, in not too distant past 500 in interest a year wasn't that difficult to achieve. But they will loose some of their appeal, yes.