ISA Query

Anthear

Hi - I have held a Cash ISA for a number of years with provider 'X'.  I was £3.6k short of the FSCS ceiling of £85k, so put this amount into the account with provider 'X' after 6 April (having already used last year's allowance).

I have read somewhere that you cannot have 2 Cash ISAs 'live' at the same time??  Can I open a new ISA with a different provider 'Y' and put the remaining £16.4k of this year's allowance in?

Many thanks

[Deleted User]

Not sure where you read that. You can have as many cash ISAs as you want but you can only OPEN one or PAY INTO  one in any one tax year.

Anthear

Thanks for your reply - but does that mean I can open a new one (provider Y) and pay into it if I have already paid £3.6k into Provider X this tax year?

I am not trying to pay more than £20k into an ISA in a tax year, I just want to open a new one (as balance is now £85k) and put the remainder (£16.4k) of this year's allowance in.

Can I do that?

TadleyBaggie

As said, you can only pay into one in any tax year.

Anthear

TadleyBaggie said:

As said, you can only pay into one in any tax year.

OK - so I have blown my £20k allowance by paying £3.6k into an existing product??
What if I take it out and start again and put £20k into a new provider??

xylophone

 See https://www.gov.uk/individual-savings-accounts

Transfer part of  previous years' subscriptions to another to another provider and then add the remainder of this year's contribution to  the existing ISA.

Or transfer this year's contribution to another provider and continue up to the maximum with that provider.

Or subscribe the remainder of this year's contribution to a stocks and shares ISA.

Or........various permutations described in link above.

Anthear

xylophone said:

 See https://www.gov.uk/individual-savings-accounts

Transfer part of  previous years' subscriptions to another to another provider and then add the remainder of this year's contribution to  the existing ISA.

Or transfer this year's contribution to another provider and continue up to the maximum with that provider.

Or subscribe the remainder of this year's contribution to a stocks and shares ISA.

Or........various permutations described in link above.

It looks like you can only “open “ one ISA a year so I think I’ll be OK to open a new account then transfer the £16.4K from a non-ISA account 

[Deleted User]

Anthear said:

xylophone said:

 See https://www.gov.uk/individual-savings-accounts

Transfer part of  previous years' subscriptions to another to another provider and then add the remainder of this year's contribution to  the existing ISA.

Or transfer this year's contribution to another provider and continue up to the maximum with that provider.

Or subscribe the remainder of this year's contribution to a stocks and shares ISA.

Or........various permutations described in link above.

It looks like you can only “open “ one ISA a year so I think I’ll be OK to open a new account then transfer the £16.4K from a non-ISA account 

Not if you have already contributed to another ISA. Read my first post, the bit in capitals. Or you could do what xylophone has said as his/her second suggestion.

sheramber

 Question  on page 43 of application form
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/375474/isa-guidance-notes.pdf

Do you declare that you have not subscribed and will not subscribe to another cash ISA in the same tax year that you subscribe to this cash ISA? 

Seems to exclude opening a new cash ISA  if t you have subscribed to another one iin the same tax year.

Keep_pedalling

Why have you so much cash in an ISA paying just above O% interest? It is certainly not worth adding more, for cash savings you can do better outside of ISAs so they have become pretty pointless for most people.

Anthear

Keep_pedalling said:

Why have you so much cash in an ISA paying just above O% interest? It is certainly not worth adding more, for cash savings you can do better outside of ISAs so they have become pretty pointless for most people.

Several reasons, one of which is that I earn more than £1,000 in savings interest each year and am straying into getting taxed on it.
The other is that unless you want to lock in your money for a particular term, 0.5% is pretty much where it's at across the board.  It makes sense to shelter the money in the short term.  👍