Closing an ISA - help!

UnseenGhost

Hi, I have just transferred my money out of my current ISA into another account ready for a new ISA in the NFY. When I went to close it online, it says that for that account I need to go to a branch, but they are all closed (around me) due to Covid-19. Can I leave an account open and just not touch it whilst using a new ISA or can you only have one ISA open? Thank you!

Notepad_Phil

Don't worry, it won't be a problem if you just leave the current cash ISA open and then open a new cash ISA on 6th April or later. The restriction on cash ISAs is in the number that you open within the same financial year, not in how many in total you have.

eskbanker

Notepad_Phil said:

The restriction on cash ISAs is in the number that you open within the same financial year, not in how many in total you have.

At the risk of being pedantic, the restriction is actually on the number you pay new money into in a tax year, not how many you open, in that it's perfectly OK to open multiple cash ISAs in a tax year if all except one are used only for transfers of prior year money....

badger09

UnseenGhost said:

Hi, I have just transferred my money out of my current ISA into another account ready for a new ISA in the NFY. When I went to close it online, it says that for that account I need to go to a branch, but they are all closed (around me) due to Covid-19. Can I leave an account open and just not touch it whilst using a new ISA or can you only have one ISA open? Thank you!

I think you've had a narrow escape!

Why do you want to transfer money out of an ISA if you want to pay it into a new ISA in the next tax year? Why do you want a new ISA? 

What exactly are you trying to do?

Albermarle

Normally it is much better to open a new ISA after April 5th with a nominal/minimum amount and then request the old one is transferred into the new one.
You just need to check that  that any new one you open accepts transfers in . I think the majority do but not all. 

Tildaplum

the answer depends on what exactly you have done - transferred exactly what into which other account?

UnseenGhost

I have a help to buy ISA to pay into this coming FY, so because you can only use one ISA in the FY I transferred my savings out of my current ISA Saver and into a normal everyday savings account. Then from 6th April onwards, my only ISA would be the Help To Buy ISA that I can start paying into. I opened the HtB before the cut off last year but couldn't use it until April due to already paying into an ISA Saver.

masonic

In that case there is no harm in leaving it open. There was really no requirement to empty it so hopefully you have a better paying non-ISA account lined up for the money you've withdrawn.

eskbanker

UnseenGhost said:

I opened the HtB before the cut off last year but couldn't use it until April due to already paying into an ISA Saver.

Are you sure the HTB is still open if you didn't pay anything in within x days/weeks/months of opening?  Some have/had that requirement....

UnseenGhost

eskbanker said:

UnseenGhost said:

I opened the HtB before the cut off last year but couldn't use it until April due to already paying into an ISA Saver.

Are you sure the HTB is still open if you didn't pay anything in within x days/weeks/months of opening?  Some have/had that requirement....

sorry for the late response! I opened it with £200 and then left it alone, this is what I was advised to do by my bank, so it is still open

eskbanker

UnseenGhost said:

eskbanker said:

UnseenGhost said:

I opened the HtB before the cut off last year but couldn't use it until April due to already paying into an ISA Saver.

Are you sure the HTB is still open if you didn't pay anything in within x days/weeks/months of opening?  Some have/had that requirement....

sorry for the late response! I opened it with £200 and then left it alone, this is what I was advised to do by my bank, so it is still open

As well as the £200 into your HTB ISA, did you pay anything into your other cash ISA during 2019/20, as implied above?  If so, which institution(s) are these with?  Some allow you to pay into both but most don't....