Trouble opening a H2B ISA with an ISA already open

1CeCe

Thank you so much for your reply!
Have just had a quick chat with another provider, who said that I could transfer my cash ISA to them to create my HTB ISA, and then have my current ISA closed (as part of the transfer process). Is this wise? Or could I maintain both ISAs?

masonic

You can't maintain both ISAs. All of your cash ISA subscriptions paid in during the current tax year must be in one account (or for split ISA providers with that single provider).

1CeCe

Again thank you!
So currently I could open a new HTB ISA with another provider with a zero initial balance, then just transfer in the current amount in my cash ISA? I would still have to close my current cash ISA is that correct? or could I leave it dormant and then pay into it again from the new tax year - April 2020/21?

masonic

1CeCe wrote: »

Again thank you!
So currently I could open a new HTB ISA with another provider with a zero initial balance, then just transfer in the current amount in my cash ISA? I would still have to close my current cash ISA is that correct? or could I leave it dormant and then pay into it again from the new tax year - April 2020/21?

Theoretically you could leave it dormant, but if you plan to continue paying into the HTB ISA beyond April 2020, you won't be able to pay into it again until the tax year after you stop paying into the HTB ISA.

1CeCe

Got it! Again thank you so much!
Once transfer goes through for the new HTB ISA, then my current ISA becomes inactive (no payments going in) and preferbly I'd like to leave dormant, but if not I can understand and accept it closing.

1CeCe

Well I can open a new cash ISA for tax year 2020/21 anyway, right?!

masonic

1CeCe wrote: »

Well I can open a new cash ISA for tax year 2020/21 anyway, right?!

No, your cash ISA for 2020/21 will be your HTB ISA if you continue to pay into it. If you use a split-ISA provider, then you can open a separate cash ISA with that provider, because they will treat them as one ISA.

1CeCe

I see, I'm still eligible for other types of ISAs (Stocks & Shares, LISA) etc with any provider in tax year 2020/21 correct?

Thank you for all the above you have really clarified my understanding!

masonic

1CeCe wrote: »

I see, I'm still eligible for other types of ISAs (Stocks & Shares, LISA) etc with any provider in tax year 2020/21 correct?

Yes, you can pay into one ISA of each type per tax year. The four types are cash (HTB is a cash ISA), S&S, Lifetime and Innovative Finance.

pumpkinman

Finally got official confirmation from Nationwide today that my H2B ISA is open, so all's well that ends well. I've also submitted a formal complaint to HSBC in the form of a letter.