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closing and opening cash ISA.
mustardtree6
Posts: 72 Forumite
I closed my only cash ISA recently, which I started in April 2015 to pay off a loan. Is it possible to open another cash ISA this tax year or do I have to wait till APril 2016 to open another one? I'm getting confused with this new flexibility that you can take money out of ISAs and put it back in. Does it only apply to existing accounts or can it apply to closed accounts?
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Comments
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If you're putting money in and taking out, is a cash ISA really the best account to use? None come anywhere near 5% you can get outside ISAs.
As far as I'm aware you have to declare that you haven't opened another ISA this year so you can't open another till April which might be a benefit to you if it gives you time to look at better options.Remember the saying: if it looks too good to be true it almost certainly is.0 -
This new option doesn't become available until the tax year 2016-17.mustardtree6 wrote: »I'm getting confused with this new flexibility that you can take money out of ISAs and put it back in.0 -
You can subscribe to (i.e. pay cash into) one cash ISA per tax year, this means if you've opened one this year already you'll have to wait until next April 6th. Unless by some stroke of luck you opened your old ISA on or before April 5th and did nothing but withdraw funds since?
If you're stuck waiting until next April I suppose your options are to use a current account that pays interest (Santander 123, etc) or maybe buy a 6-month bond.: )0 -
the new flexibility hasn't come in yet, but there is an existing rule which allows you to make a "self transfer". this means that, if you've paid into a cash ISA during this tax year, and then closed it completely, you are allowed to open a fresh cash ISA.
you can only do a "self transfer" once in the same tax year.
see discussion and links (in Mikeyorks' posts) here: https://forums.moneysavingexpert.com/discussion/36450110 -
I would open a current account or regular saver instead as they pay better rates than cash isas anyway even taking the tax side of things into account.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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