Should I open another ISA?

Buzzz

I've got two ISA's, one Post Office (£6k) i've just opened, and another old Tesco one, which I may look to transfer as I don't believe the rate is good (checking tonight).

Either way, I can now of course open a new ISA this FY, although I am unlikely to save more than £6k this year.

The question is whether I should add to the existing post office ISA, which can take the higher amount, or whether I open a new ISA?

Thoughts please

bsms1147

Your ISA allowance for this year is £15,240, regardless of how much you have from previous years. Put it where you can get the best rate.

You may find that the 'best rate' is - as it is for many people - not in an ISA.

Buzzz

Thanks for your reply, I know what the rate is this year, i'm not sure whether to open another 1.5% ISA or whether to just add what I save each month to the existing 1.5% ISA as I don't have any more 'lump sum' to play with, it's just what I save each month.

bsms1147

Buzzz wrote: »

Thanks for your reply, I know what the rate is this year, i'm not sure whether to open another 1.5% ISA or whether to just add what I save each month to the existing 1.5% ISA as I don't have any more 'lump sum' to play with, it's just what I save each month.

As soon as you add to your old ISA, it will become your ISA for this year. If it's a choice between 1.5% in your old one or 1.5% in a new one, then I see no reason to open a new ISA.

badger09

Buzzz wrote: »

I've got two ISA's, one Post Office (£6k) i've just opened, and another old Tesco one, which I may look to transfer as I don't believe the rate is good (checking tonight).

Either way, I can now of course open a new ISA this FY, although I am unlikely to save more than £6k this year.

The question is whether I should add to the existing post office ISA, which can take the higher amount, or whether I open a new ISA?

Thoughts please

In your post on the PO ISA thread, you said you "opened this on 31st March, sent with a cheque"

What does the paperwork you received say. Are you certain the £6k has been treated as 2014/15 subscription?

I ask because, due to the Easter Holiday, there were only a few working days between 31st March, if that was when you 'sent the cheque' and the end of the tax year.

If the £6k has been credited in 2015/16, then your cash ISA options are more limited

jimjames

Buzzz wrote: »

Thanks for your reply, I know what the rate is this year, i'm not sure whether to open another 1.5% ISA or whether to just add what I save each month to the existing 1.5% ISA as I don't have any more 'lump sum' to play with, it's just what I save each month.

Any reason why you don't want to get 5% outside an ISA or have you already filled those accounts? Better to pay tax on 5% than get 1.5% tax free.

Buzzz

As soon as you add to your old ISA, it will become your ISA for this year. If it's a choice between 1.5% in your old one or 1.5% in a new one, then I see no reason to open a new ISA.

Thanks, I didn't realise that! Can I open a new ISA this year, and still add to the one from last year?

In your post on the PO ISA thread, you said you "opened this on 31st March, sent with a cheque"

What does the paperwork you received say. Are you certain the £6k has been treated as 2014/15 subscription?

As far as i'm aware as when I applied it said something about applying now before it was too late, which I did. How would I know for sure?

Any reason why you don't want to get 5% outside an ISA or have you already filled those accounts? Better to pay tax on 5% than get 1.5% tax free.

Sorry, not sure what you're suggesting. Are you suggesting through a savings account? If so then no, I haven't considered this as I thought ISA's generally were still the best thing to do.

badger09

Buzzz wrote: »

Thanks, I didn't realise that! Can I open a new ISA this year, and still add to the one from last year?


As far as i'm aware as when I applied it said something about applying now before it was too late, which I did. How would I know for sure?


Sorry, not sure what you're suggesting. Are you suggesting through a savings account? If so then no, I haven't considered this as I thought ISA's generally were still the best thing to do.

If you can see your PO ISA online, it will tell you when the £6k was credited. Otherwise the paperwork should tell you.

jim james is saying you can achieve between 3% and 5% interest (before tax) in a variety of current accounts (and up to 6% in regular savers)

Lots of information on the Savings & Investments forum