Can I open a second ISA in the same tax year but NOT contribute to it?

masonic

benbay001 said:

Hi all, i was about to ask the same question, so this is convenient. 
I want to switch from my current iWeb ISA to II for the next tax year. Id like to be able to start contributing to the new ISA at the very start of the new tax year, so can i open the II account now? As long as i dont pay in? 
Thanks

If your intention is to transfer from iWeb to II then yes you could open and start that now and you could pay new money into II at the start of the next tax year (likely while the transfer is still in progress).

wiseonesomeofthetime

CreditCardChris said:

Every single thing I read online says you cannot contribute to 2 ISAs in the same tax year which I'm very well aware of, but is it illegal to simply open a second ISA in the same tax year but just not pay anything into it until the new tax year starts? 

I have done exactly this.

Virgin Money Exclusive Cash ISA is currently 0.50% with no requirement for the normal £1 minimum deposit.

I have opened it in case it disappeared before 6 April 2021. If a better alternative becomes available on that date, I shall open and subscribe to that instead.

This ISA is only available to current account holders with Virgin Money.

MDMD

wiseonesomeofthetime said:

CreditCardChris said:

Every single thing I read online says you cannot contribute to 2 ISAs in the same tax year which I'm very well aware of, but is it illegal to simply open a second ISA in the same tax year but just not pay anything into it until the new tax year starts? 

I have done exactly this.

Virgin Money Exclusive Cash ISA is currently 0.50% with no requirement for the normal £1 minimum deposit.

I have opened it in case it disappeared before 6 April 2021. If a better alternative becomes available on that date, I shall open and subscribe to that instead.

This ISA is only available to current account holders with Virgin Money.

Bear in mind it is variable so they could still drop the rate.

wiseonesomeofthetime

I know. Thanks. 

hermante

Joining iWeb before the fee rose from £25 to £100 in January would have been a sensible reason to open an ISA in the current tax year without contributing.

wiseonesomeofthetime

That's what I did @hermante 😁

rinnin

Seems like a good idea if you started one in 2022 at 1.3% and they're now 3.6%.

Although some close your ISA if the balance is £0 for a certain amount of time. Lets hope interest rates will stay high till the new tax year in April

35har1old

CreditCardChris said:

Every single thing I read online says you cannot contribute to 2 ISAs in the same tax year which I'm very well aware of, but is it illegal to simply open a second ISA in the same tax year but just not pay anything into it until the new tax year starts? 

Usually there is a set amount of time to fund the ISA and this far off from April i would say it would have expired.