A bit confused about ISA rule(s)

slapPCM

I wonder if anyone could help me answer these questions please? I am a bit not sure if I understand ISA rule(s) correctly.

1) I used to only have a Barclays cash ISA. Last fiscal year, I transferred all my amount to another bank's cash ISA for better rate. The barclays cash ISA account got closed automatically. Does it sound right? I mean it's too late to think about it to be honest, but I was expecting it could remained open with nil amount. I wonder if I left £1 there that would help it remain open? No communication from Barclays, and I am sure I didn't instruct them to close it.

2) For the same fiscal year, can I open 1 new cash ISA AND 1 S&S ISA, since they are different types of ISA?

3) For the same fiscal year, if I have deposited some money into my cash ISA, can I relocate them into S&S ISA later? How about move my last fiscal year's amount into S&S?

Thank you for your input!

eskbanker

slapPCM said:

1) I used to only have a Barclays cash ISA. Last fiscal year, I transferred all my amount to another bank's cash ISA for better rate. The barclays cash ISA account got closed automatically. Does it sound right? I mean it's too late to think about it to be honest, but I was expecting it could remained open with nil amount. I wonder if I left £1 there that would help it remain open? No communication from Barclays, and I am sure I didn't instruct them to close it.

Why does it matter?  There's no value in keeping old ISAs open - new ones are almost always better and there's no limit to how many you can open (there are limits on how many can be funded with new money) so you can just open another one when needed.

slapPCM said:

2) For the same fiscal year, can I open 1 new cash ISA AND 1 S&S ISA, since they are different types of ISA?

Yes.

slapPCM said:

3) For the same fiscal year, if I have deposited some money into my cash ISA, can I relocate them into S&S ISA later?

Yes, provided you move all of your current year cash ISA money together.

slapPCM said:
How about move my last fiscal year's amount into S&S?

There are no scheme-level restrictions on what you do with prior year money, but you obviously need to comply with the Ts & Cs of individual providers and products.

slapPCM

Thanks for your reply. I have a few questions if I may.
If I understand correctly, I can only open 1 new cash ISA each fiscal year? I am not aware of the number of cash ISA can be funded with new money? Is it a new rule?

eskbanker said:
there's no limit to how many you can open (there are limits on how many can be funded with new money) so you can just open another one when needed.

So let's say for current year I deposit £100 into cash ISA first. If I want to relocate to S&S, I can only do so by moving the whole amount, i.e. £100, together? I can not split the fund into two places? Thanks again.

eskbanker said:
Yes, provided you move all of your current year cash ISA money together.

eskbanker

slapPCM said:

If I understand correctly, I can only open 1 new cash ISA each fiscal year? I am not aware of the number of cash ISA can be funded with new money? Is it a new rule?

eskbanker said:
there's no limit to how many you can open (there are limits on how many can be funded with new money) so you can just open another one when needed.

Nothing new about it - the rule has always been about how many ISAs can have new money paid into them, but you seem to share the common misconception that the limit is on account openings.  The definitive source is clear, at https://www.gov.uk/individual-savings-accounts

There are 4 types of ISA:

• cash ISAs
• stocks and shares ISAs
• innovative finance ISAs
• Lifetime ISAs

You can put money into one of each kind of ISA each tax year.

slapPCM said:

So let's say for current year I deposit £100 into cash ISA first. If I want to relocate to S&S, I can only do so by moving the whole amount, i.e. £100, together? I can not split the fund into two places? Thanks again.

eskbanker said:
Yes, provided you move all of your current year cash ISA money together.

Correct, as per https://www.gov.uk/individual-savings-accounts/transferring-your-isa

If you want to transfer money you’ve invested in an ISA during the current year, you must transfer all of it.

slapPCM

thanks for great help