Can I split my old cash ISA and transfer to 2 new accounts

Dawn_S

Hello
I hope someone can clarify my query as I've read varying answers on other posts and am confused about the one ISA per tax year. Basically I have well over £90000 in an old cash ISA which is now not fully protected and is giving an awful rate. Am I allowed to open 2 new cash ISAs and transfer and split the old cash ISA evenly between them both so the money is protected and I get a better rate? eg put £47000 in a new Virgin cash ISA and £47000 in a new Coventry BS cash ISA?

Further, would I also be able to open a new cash ISA for this year's allowance with another provider say Charter savings for example?

Thanks in advance for clarification
Cheers
Dawn

greenglide

Yes, you can do that. It "may" be that some providers will not provide the facilities to move just part of the balance but most do.

If you have put no "new" money in any Cash ISA this financial year you can fund a new on as well.

However £90,000 is a lot to hold as cash, do you have a purpose for it?

t0rt0ise

You should definitely do this as only £85,000 is guaranteed safe with any one provider.

Keep_pedalling

No you can't open 2 new ISAs, but then why even open I as cash ISAs are really poor value and have been for years now?

greenglide

No you can't open 2 new ISAs,

Yes you can!!

What you cant do is put new money into two cash ISAs in one tax year.

Opening an ISA is not the same as subscribing new money to one.

toffifee

Reply to Keep Pedalling (sorry, forgot to do the quote thing): I still keep a lot of my cash savings in ISAs. I know I could get more interest by having the money in normal savings accounts and the interest would be under the threshold so I'd pay no tax on it. However I think interest rates can't stay this low forever and if/when they rise I would end up paying tax on my interest. Therefore I prefer to keep my cash in ISAs where I know the interest will never (under current rules at least) be taxable.