3 ISA's in 1 year?

darkcloudi

I understand there is a limit of £20,000 you can put into a ISA each financial year and it can be split between, savings and stocks & shares.

If for example, one of my ISA savings are at £83,000, is it possible for 2021/22 financial year to put a further £2000 into that account (to max the FSCS protected amount), Open a new ISA and put £8000 into this ISA as a savings account and invest £10,000 into stocks and shares with another bank.

As weren't sure if you can put money into 2 savings accounts, from my understanding you can only subscribe to one savings and one stocks and shares? Assuming, one doesn't go over the 20k limit, I can't see it a problem topping up the original ISA, but guess banks would?

Alexland

It's the government who set the rule you can only add new money into one cash ISA each tax year so either an old one or a new one not both.
https://www.gov.uk/individual-savings-accounts
"There are 4 types of ISA:

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

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

eskbanker

darkcloudi said:

If for example, one of my ISA savings are at £83,000, is it possible for 2021/22 financial year to put a further £2000 into that account (to max the FSCS protected amount), Open a new ISA and put £8000 into this ISA as a savings account and invest £10,000 into stocks and shares with another bank.

As above, you can't do what you hoped to be able to do, but the obvious solution (if wanting to put £10K into cash ISAs) would be to put all £10K into the new cash ISA, rather than feeling any compulsion to get the older one right up to the £85K limit.

Whether you really need to keep £93K in cash ISAs is another question worth considering, given that you're highly likely to be losing real-terms value to inflation....

Aceace

If you have £83k in a cash ISA and are concerned about exceeding the £85k compensation limit, you would probably be better not adding more to that ISA so that you have room for the interest to be added without going over the limit. 

MDMD

Aceace said:

If you have £83k in a cash ISA and are concerned about exceeding the £85k compensation limit, you would probably be better not adding more to that ISA so that you have room for the interest to be added without going over the limit. 

Although the risk of the company going under is infinitesimally small, compared to the near certain risk of the value of the money lost to inflation.