Rules on opening an ISA and paying into existing ISAs

darkidoe

bigfreddiel wrote: »

Cash ISAs are pointless for any long term savings.

Equity ISAs are the correct platform for your savings. For some reason the majority of people are frightened of this route to tax free riches.

Cheers fj

Rightly so. It is not for everyone. But it is what everyone should plan for and have a stake in so that they are not left behind in the capitalist world.

jimjames

bigfreddiel wrote: »

Cash ISAs are pointless for any long term savings.

Equity ISAs are the correct platform for your savings. For some reason the majority of people are frightened of this route to tax free riches.

Cheers fj

This is one post of yours I wholeheartedly agree with

colsten

Linton wrote: »

So you can only have 1 ISA open for contributions at any one time in any one tax year.

Actually, that's not totally correct. You could, for instance, put money into both, a cash ISA and an S&S ISA in the same tax year, as long as the total deposits do not exceed the annual ISA subscription limit. Or, if you are entitled to an HTB ISA, put some into an HTB ISA and into a cash ISA at providers which offer split ISAs, and you could even also put some into an S&S ISA. So you could put money into at least 3 different ISAs in the same tax year.

Whether anyone would want to do this depends on the circumstances. For instance, I put £300 into an HTB cash ISA when they paid £10 interest a month for 12 months on this in 2015/16. My remaining allowance went into my S&S ISA. As and if interest rates go up again, some people might also want to split their allowance between e.g. a LISA and a normal cash ISA - assuming the split-ISA providers will offer this. I can also see that some LISA savers would want to put some money into S&S ISAs, in order to make the best use of their ISA allowance.

Linton

colsten wrote: »

Actually, that's not totally correct. You could, for instance, put money into both, a cash ISA and an S&S ISA in the same tax year, as long as the total deposits do not exceed the annual ISA subscription limit. Or, if you are entitled to an HTB ISA, put some into an HTB ISA and into a cash ISA at providers which offer split ISAs, and you could even also put some into an S&S ISA. So you could put money into at least 3 different ISAs in the same tax year.

All true, but I didnt want to confuse the OP with information that did not seem appropriate to his specific needs. Have you forgotten you can have an Innovative Finance ISA as well? That makes it 4!

colsten

Linton wrote: »

All true, but I didnt want to confuse the OP with information that did not seem appropriate to his specific needs.

That's true, it could confuse the OP. But it could also confuse many others if they read that could only pay into 1 ISA each tax year.

Linton wrote: »

Have you forgotten you can have an Innovative Finance ISA as well? That makes it 4!

You are right, I have erased iffy ISAs from my easy-access memory. In my defence, I did say "at least 3". Up to 4 it is, indeed. At the moment.