Can’t deposit into new transferred fixed ISA - Can I open a second ISA?

Teddg

Hi,
This one has me puzzled, so hoping someone can help. 

I’ve just started the process of transferring my Nationwide Cash ISA balance into a new Post Office 1 year fixed Cash ISA. The Post Office ISA however does not allow you to increase the balance after the transfer so I can’t top it up during 20/21 to utilise the £20k allowance for this tax year (note I’ve not used any of my 20/21 allowance prior to the transfer).

Am I therefore allowed to open up a further Cash ISA so that I can make regular deposits during 20/21 (I.e open two cash ISA’s in the same tax year). Ps - I also have a Stocks and Shares ISA but that was opened in 19/20 and again haven’t deposited into that in 20/21 yet (but likely to do so).

Thanks in advance.

eskbanker

Yes, you can open as many ISAs as you like, but the rule is that you can only pay new money into one of each type, so using one for prior year money and another for current year money is fine.

Albermarle

The Post Office ISA however does not allow you to increase the balance after the transfer so I can’t top it up during 20/21

I do not think this is strictly true. Normally a fixed rate ISA only allows new deposits when you open the account , or usually for a short period afterwards. After that short period you can not make any new deposits .

The transfer in is a separate issue .