Reinvesting in old ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
4 replies 799 views
FrenskeFrenske Forumite
15 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
A simple question but it is difficult to find the answer for it on-line despite 100s of pages of ISA related pages.

I know you can have multiple ISA accounts open, but only open one new one and contribute that one. My question is can I add money to an old ISA account I opened previously. Do I need to do something, perform an ISA swap or whatever?

Example:
2015 Open ISA account 1, contribute £10K
2016 Open ISA account 2, contribute £10K
2017 Contribute £10K to ISA account 1.

Replies

  • AnotherJoeAnotherJoe Forumite
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    You can pay money into an old ISA as long as you havent paid into another one in the same tax year. Theres nothing you need to do (other than pay the money :D).
  • eskbankereskbanker Forumite
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    You can indeed pay more money into an old ISA as per your example (as long as you don't also pay any new money into ISA 3 of the same type in the same tax year), but a few points worth noting:
    • It is of course tax years that apply rather than calendar years so contribution limits and rules pertain to 6 April in one year to 5 April of the following year
    • In most cases, savings products launched two years ago (and still accepting deposits) won't be as competitive as new ones, so your approach would be relatively unusual
    • In your scenario you'd probably need to complete a form to reactivate ISA 1 after missing a year
    • The elephant in the room with all cash ISA questions: chances are you'd get better rates with other types of account (regular savers, current accounts, etc), assuming you're referring to cash rather than S&S versions?
  • FrenskeFrenske Forumite
    15 Posts
    I actually got S&S accounts. I decided to invest with a different company to get a incentive bonus e.g. a cashback with TopCashBack. The cashback represented 3.4% of the investment so that was a nice welcome bonus to begin with. However I prefer to invest with the old ISA which provides more control over investment (potentially higher rewards but also higher risks).
  • jimjamesjimjames Forumite
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    Frenske wrote: »
    I actually got S&S accounts. I decided to invest with a different company to get a incentive bonus e.g. a cashback with TopCashBack. The cashback represented 3.4% of the investment so that was a nice welcome bonus to begin with. However I prefer to invest with the old ISA which provides more control over investment (potentially higher rewards but also higher risks).

    If it's a S&S ISA then the previous comments about old ISAs being uncompetitive don't really apply. Pay into whichever ISA gives you the investments you want.
    Remember the saying: if it looks too good to be true it almost certainly is.
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