Top Cash ISAs Discussion Area

IantheWelsh

Hello, I've read the Cash ISA article, but wanted to ask a question as I am new to the ISA world.
If I open a cash ISA with e.g. A/L before 5th April and deposit £2,500 can I open a new ISA with another provider from 6th April and, throughout the year, desposit more money to bring the A/L ISA to the max and the remainder in the new provider's ISA?
I assume you cannot open two of the same ISA's, e.g. I open the A/L ISA now and max it out and then open a new ISA (same offer) from 6th April?
Grateful for your advice:-)

Baldur

IantheWelsh wrote: »

If I open a cash ISA with e.g. A/L before 5th April and deposit £2,500 can I open a new ISA with another provider from 6th April and, throughout the year, desposit more money to bring the A/L ISA to the max and the remainder in the new provider's ISA?

No, you can only subscribe to one Cash ISA per tax year so, in your example, you would lose £1,100 (assuming that you are under 50) of your 2009/10 allowance on 5th April and would only be able to subscribe your 2010/11 allowance of £5,100 to whichever provider you choose, whether A&L or A. N. Other....

I assume you cannot open two of the same ISA's, e.g. I open the A/L ISA now and max it out and then open a new ISA (same offer) from 6th April?

You assume incorrectly, you can continue to subscribe to the A&L ISA with next year's allowance - I doubt whether they would open a separate account.

skitskut

IantheWelsh wrote: »

Hello, I've read the Cash ISA article, but wanted to ask a question as I am new to the ISA world.
If I open a cash ISA with e.g. A/L before 5th April and deposit £2,500 can I open a new ISA with another provider from 6th April and, throughout the year, desposit more money to bring the A/L ISA to the max and the remainder in the new provider's ISA?
I assume you cannot open two of the same ISA's, e.g. I open the A/L ISA now and max it out and then open a new ISA (same offer) from 6th April?
Grateful for your advice:-)

If you open a cash ISA with e.g. A/L before 5th April and deposit £2,500 and then open a new ISA with another provider from 6th April you would only then be allowed to contribute more funds to this new ISA as you cannot put new money into more than 1 ISA in any one financial year. You can do what you are suggesting in your last question though.

IantheWelsh

Hello again, thank you for your responses. Very useful.
My understanding now is that by opening up a cash ISA with A/L now and depositing £2,500 at the good rate, I could put up to £5,100 in to the same account from April 6th and benefit from the same rate offered (for however long it lasts).
One further question: If by 5th April 2011 I have e.g. £7,600 in this ISA, can this be transferred into a new cash ISA from 6th April 2011 (depending on whether it accepts transfers) and then deposit new money up to the allowed limit in that year?

Baldur

IantheWelsh wrote: »

Hello again, thank you for your responses. Very useful.
My understanding now is that by opening up a cash ISA with A/L now and depositing £2,500 at the good rate, I could put up to £5,100 in to the same account from April 6th and benefit from the same rate offered (for however long it lasts).

Correct. The rate is guaranteed to be BoE base rate +3% for 12 months.

One further question: If by 5th April 2011 I have e.g. £7,600 in this ISA, can this be transferred into a new cash ISA from 6th April 2011 (depending on whether it accepts transfers) and then deposit new money up to the allowed limit in that year?

Yes. The full balance (including any accrued interest) can be transferred.

Eco_Miser

wmbj wrote:

Help, I want to save for my daughters university in 16 months, a lump sum of £1000 and £400 for 16 months.

Baldur wrote: »

£1,000 plus £400 per month would take you over the annual ISA allowance of £5,100 (from 6th April) in under 11 months, so you would not be able to save at that rate for the full 16 months.

However, wmbj could pay in £1000 now, £400 per month throughout 20010/11 (£4800), and £400 each in April-July 2011 (£1600) without going over the limits.

keith_45

Hi, I have an ISA account with Natwest giving me 2.5% pa. On 10th April every year I max out my ISA for the year, so I have 2 x annual limit in my account + £5100 ready to invest on 10th April. So I have reached my limit for this year already.
Can I still take advantage of an offer out there now an dopen an account all ready for April, or do I have to wait until the beginning of the new tax year?
What's a good deal at the mo that is fixed for a year or so? Can I take advantage of this deal or must I wait? Will the deals still be around in April?

Baldur

6th April is the start of the 2010/11 tax year, not the 10th.

Even if you open an account now, there is no obligation on the provider to honour the currently offered rate in xx number of days time - an ISA isn't 'opened' until the provider is in receipt of a valid subscription.

Whether the 'deals' will still be available on 6th April is anyone's guess.

mouche

I've had an ISA with HSBC for 4 years and now want to move it due to the pitiful interest rates.

I'm planning to move my old ISA money (which includes 2009-2010's allowance) to an A&L Direct ISA. I am planning to open a new A&L Flexible Cash ISA for next year's allowance (I plan to deposit the money in it on 6th April when the new tax year begins). I'm confused about a few things:

1) Is it ok to have two ISAs? My understanding is I can do this provided any 'new' money goes into only one of the ISAs. Is this correct?
2) I think I can open the Direct ISA for transferring in the old money straight away. Is this correct or do I need to wait for the new ISA year?
3) Same question for the Flexible Cash ISA.

Would really appreciate your help with this.

Baldur

mouche wrote: »

1) Is it ok to have two ISAs? My understanding is I can do this provided any 'new' money goes into only one of the ISAs. Is this correct?

Yes

2) I think I can open the Direct ISA for transferring in the old money straight away. Is this correct....?

Yes

3) Same question for the Flexible Cash ISA.

See my reply to this in the post above yours:

Even if you open an account now, there is no obligation on the provider to honour the currently offered rate in xx number of days time - an ISA isn't 'opened' until the provider is in receipt of a valid subscription.