cash ISA rules clarification

Poor_Leno

Hi guys,

earlier this (tax) year, on 9 April, I opened a Loyalty ISA with Nationwide. I then closed this account when they informed me that the rate was being dropped (think they even closed the account to new customers since aswell).

This tax year I also swiched my help to buy ISA from one provider to another.

Can I open a new Cash ISA since I don't have one any longer, or do I have to wait until April 5 next year in spite of this because I already opened one this tax year, even though I closed it?

Thanks!
Stuart

msallen

No you cannot deposit fresh cash in two Cash ISAs in one year unless you transfer from the first one to the second one (and then of course you can't deposit anything into the first one any more).

Did you close the NW one or just empty it? If you just emptied it then the best option would be to stick a quid or two in it and then transfer it.

Poor_Leno

Yeah, my bad for doing that....thought it would be the case. I should have kept it open and switched a couple quid like you say.. No bother, It just would have been handy to be able to open one again. Cheers.

masonic

Note a HTB ISA is a cash ISA, so you already have a cash ISA for 2019/20, assuming you have paid money into your HTB ISA during this tax year.

You could not have kept the Nationwide Loyalty ISA open with a couple of quid in it AND switched your HTB ISA from Nationwide to another provider. Both ISAs would need to have been switched to another split-ISA provider. All current year subscriptions must be transferred together.

Nationwide offers flexibility on its ISAs, so it is perfectly fine to flexibly withdraw money from the loyalty ISA and close it. If your new HTB ISA provider allows split-ISA, you are free to open a new cash ISA with this provider and pay new money into it. Otherwise you'll need to transfer your HTB ISA again to a split-ISA provider, or wait until the tax year after you stop paying into the HTB ISA to be able to open and fund another cash ISA elsewhere.