Cash ISA

badger09

dosh1 wrote: »

Confused so wonder if you can help?


I have x amount (say £5,000 for ease) of money in a CASH ISA account from a previous year's ISA saving.


I also have x amount (say £1,000 for ease) spare that I would like to invest in a CASH ISA account for 2015/6 entitlement.


Am I able to open an account for this year's entitlement and put in the £1000 I have spare (doesn't allow transfers)
AND
Transfer the existing CASH ISA money of £5000 to a DIFFERENT cash ISA account (if I chose to open a new one)?


Basically keeping both amounts of money separate but open two accounts. One for existing money and one for new 2015/16 ISA entitlement?


Thanks

You can indeed do what you are suggesting.

Also, if the new ISA to which you want to subscribe your £1k (which doesn't accept transfers in) pays a much better rate than you can find for your previous years' £5k ISA, you could simply close that one, withdraw the £5k and pay it into the new one, so you'd have £6k at a better rate.

However, if £6k is your total cash savings, you can probably do much better by using one or more of the many current accounts paying between 3% and 5%.

dosh1

Thanks for your response. Very clear.