Can I Pay into more than 1 ISA Per Year?!

Danny5

Hi all, just need a bit of advice please..


I've been paying into a variable ISA that I opened last November, on a weekly basis and wish to carry on doing so.
However I've a 2 year Fixed ISA that is due to mature this month, which I would like to reinvest in a new fixed ISA and maybe add the funds that are currently in my variable ISA.


Is this possible? The new fixed rate ISA would be the only one I open this tax year, but technically I'll be paying into that (transferring from existing ISA's), but I've already been paying into one and hopefully carry on doing so...


I hope this makes sense!


Thanks in advance for your help

colsten

Transferring an existing ISA doesn't count towards your annual allowance. Do not make the transfer yourself - you have to ask the new ISA provider to make the transfer.

jimjames

You can pay into a maximum of 2 ISAs per year, one cash ISA and one S&S ISA.

badger09

Danny5 wrote: »

Hi all, just need a bit of advice please..


I've been paying into a variable ISA that I opened last November, on a weekly basis and wish to carry on doing so.
However I've a 2 year Fixed ISA that is due to mature this month, which I would like to reinvest in a new fixed ISA and maybe add the funds that are currently in my variable ISA.


Is this possible? The new fixed rate ISA would be the only one I open this tax year, but technically I'll be paying into that (transferring from existing ISA's), but I've already been paying into one and hopefully carry on doing so...


I hope this makes sense!


Thanks in advance for your help

In addition to what colsten said:

You must keep all your current year's subscriptions in one place and your new Fixed Rate ISA provider is unlikely to let you add more money after a limited period, typically 2 - 4 weeks.

If you wish to transfer (using new FRISA provider's process) funds in your existing variable rate ISA, you can:

a) transfer the whole lot

or
b) transfer some or all of the previous years' subscriptions, but leave this year's subscriptions where they are and keep adding new money

c) transfer some or all of the previous years' subscriptions, then transfer this year's subscriptions to yet another (instant access) provider & once the transfer is complete, you can add new money

Having said all that, are you sure a cash ISA is the best place for your savings at the moment?

Gizmo247

It is worth knowing that you can transfer both to a provider like Nationwide that reports all your ISAs to the HMRC under a single ISA umbrella i.e. Your ISAs are treated as sub-ISAs of a super-ISA.

Of course, this would mean that you would have to open the fixed ISA in Nationwide and not go over the maximum funding limit for cash ISAs for the current tax year.

Danny5

Right, I think I get it now! Thankyou guys for all your help

Loobyloo96

Sorry to jump on the end of the thread. I just wanted someone who knows more about this than I do to clarify something.

I have two variable rate cash ISAs both opened before this current tax year and have not yet used this years allowance. One has a higher rate but the other has a rate that will drop substantially if I don't subscribe a minimum of £1 per year. Can I use this years allowance to subscribe to both ( ie the lions share to the ISA with the higher rate and a nominal amount to the other ) or can I only subscribe to one of them?

jimjames

Unless they are with a company like Nationwide that allows you to split your allowance you can only pay into one.


There are far better rates outside ISAs for smaller amounts though.

Loobyloo96

Thanks for that.