Can I open two ISAs but only subscribe to one in the same tax year?

smudge2013

I have quite a lot of savings, so I like to split my money between two banks (the old adage not putting all eggs in one basket). I have an ISA with both banks. Last year the ISA with bank A just sat earning interest, while I opened and paid into the ISA with bank B.

With the turn of the new tax year, the interest rates on both ISAs have fallen to a whopping 0.1%. I don't want to combine the ISAs, and I don't want to leave one of them earning virtually no interest.

Is it within the rules to "convert/upgrade" my ISA with bank A to their current best rate and then not subscribe to it at all for the tax year. At the same time I would then "convert/upgrade" my ISA with bank B to their current best rate and pay into that each month.

I would only be subscribing to one ISA in the tax year, but would the upgrading of two ISA accounts be treated as opening two ISAs and be in breach of the rules?

Many thanks,

James

KGriff

Yes you can, this link to the MSE website explains all you need to know.

http://www.moneysavingexpert.com/savings/cash-isa-transfers#qa

Hope that helps.

badger09

jamesl85 wrote: »

I have quite a lot of savings, so I like to split my money between two banks (the old adage not putting all eggs in one basket). I have an ISA with both banks. Last year the ISA with bank A just sat earning interest, while I opened and paid into the ISA with bank B.

With the turn of the new tax year, the interest rates on both ISAs have fallen to a whopping 0.1%. I don't want to combine the ISAs, and I don't want to leave one of them earning virtually no interest.

Is it within the rules to "convert/upgrade" my ISA with bank A to their current best rate and then not subscribe to it at all for the tax year. At the same time I would then "convert/upgrade" my ISA with bank B to their current best rate and pay into that each month.

I would only be subscribing to one ISA in the tax year, but would the upgrading of two ISA accounts be treated as opening two ISAs and be in breach of the rules?

Many thanks,

James

If both bank A & bank B allow you to 'convert/upgrade' to their current best rate, you can do as you suggest.

However, most banks' current best rate probably don't accept transfers in, even internal 'convert/upgrades' :cool: