Can I open another cash ISA account?

sam1970

I already have one cash ISA in which I have just over £70000 but I am worried that if I deposit my £15000 allowance for 2016/2017 I will exceed the £75000 protection limit. Is it possible to open another cash ISA account with another bank and start building the saving up in it? Am I allowed to that by law?

jimjames

Yes. You can open another ISA anywhere if you've not contributed. I assume you're aware you can get better rates elsewhere though

sam1970

Thanks for that. So lets assume my current ISA is with bank A, tomorrow I go and open another cash ISA with Bank B and deposit 2016/2017 allowance in it. In August 2016, the rate for my account with Bank A will drop (from 1.5 to 0.5%)...Can I open a new ISA account with Bank C and transfer the money from A to C?

jimjames

sam1970 wrote: »

Thanks for that. So lets assume my current ISA is with bank A, tomorrow I go and open another cash ISA with Bank B and deposit 2016/2017 allowance in it. In August 2016, the rate for my account with Bank A will drop (from 1.5 to 0.5%)...Can I open a new ISA account with Bank C and transfer the money from A to C?

Yes. Transfers can be done at any time and have no impact on allowances

badger09

sam1970 wrote: »

Thanks for that. So lets assume my current ISA is with bank A, tomorrow I go and open another cash ISA with Bank B and deposit 2016/2017 allowance in it. In August 2016, the rate for my account with Bank A will drop (from 1.5 to 0.5%)...Can I open a new ISA account with Bank C and transfer the money from A to C?

jimjames wrote: »

Yes. Transfers can be done at any time and have no impact on allowances

I'm sure you know, but with £70k involved, I'll reiterate. You must ask Bank C to arrange the transfer of your ISA from bank A, rather than make the transfer yourself.