Multiple ISA query use?

maturelearner

OK. So I've had ISA's for a number of years and opened one last tax year. I have 2 Cash ISA's and 1 stocks and shares.


This tax year I've made a withdrawl from one cash ISA but credited none. Can I transfer all of one Cash ISA into a new one I am planning to open this year?


Thanks in advance for your responses.

Vortigern

Yes, you can, but why bother?

KGriff

Maturelearner, the simple answer is yes you can open up a new ISA in this tax year 2015/16 and add NEW cash to it totalling £15,240.

In addition you could transfer any or all of your previous ISA savings to the new account.

One of the reasons to NOT do this however, is that other saving products on the market, such as Santanders 123 current account may (in the short term) pay more interest on your total savings compared to a cash ISA, even though it's 3% interest rate is not tax free, or you may want to attempt to place the money at a higher risk in stocks and shares in the hope of getting an even greater return, but remember your savings may go down aswell as up.

Equally however, in the long term you may want to shelter more than £15,240 from tax and get all your future savings tax free in a cash ISA, the rates of which are lower at this moment in time, but may go up in future years.

It really is a matter of choice, which best fits your circumstances both short and long term.

But the simplest answer is yes you can transfer your old ISA to the new one, if that best suits your needs.