Can I Open Another ISA Account? 13 September 2022 at 7:38PM in ISAs & tax-free savings 5 replies 170 views

drob4

Appreciate any info on the following scenario:

My fixed term ISA recently matured. I opted to open a new fixed term ISA account with the same provider. My balance (including interest) was paid into this account. I have a few more days to add to the new account if I so wish.

Assuming I haven’t added anything extra to my new fixed term ISA (or made any other ISA contributions this year), can I open a new cash ISA with a different provider and fund it immediately?

I’m unsure if I would be paying into two different accounts in the same year.

masonic

Yes you can. You wouldn't be paying into more than one ISA in the same tax year as money transferred from previous tax years is disregarded.

drob4

Thanks for the reply.

My plan was to open a new cash ISA with a new provider and pay in £10000. I would then open a new Santander ISA (to benefit from their new offer) and transfer the £10000. A quick Google suggests this isn’t possible (unless there is a distinction between ‘opening’ and ‘funding’ a new isa).

Daliah

drob4 said:

Thanks for the reply.

My plan was to open a new cash ISA with a new provider and pay in £10000. I would then open a new Santander ISA (to benefit from their new offer) and transfer the £10000. A quick Google suggests this isn’t possible (unless there is a distinction between ‘opening’ and ‘funding’ a new isa).

If you have not put new money into any cash ISA since April 6 this year, you can do exactly as you describe. There is indeed a distinction between opening and funding ("subscribing to") an ISA.

Be aware though that once your new ISA has been transferred to the Santander Fixed Term one, you have only got a very small window to maximise your 2022-23 ISA contribution to a cash ISA.  

drob4

Daliah said:

drob4 said:

Thanks for the reply.

My plan was to open a new cash ISA with a new provider and pay in £10000. I would then open a new Santander ISA (to benefit from their new offer) and transfer the £10000. A quick Google suggests this isn’t possible (unless there is a distinction between ‘opening’ and ‘funding’ a new isa).

If you have not put new money into any cash ISA since April 6 this year, you can do exactly as you describe. There is indeed a distinction between opening and funding ("subscribing to") an ISA.

Be aware though that once your new ISA has been transferred to the Santander Fixed Term one, you have only got a very small window to maximise your 2022-23 ISA contribution to a cash ISA.  

Would the £10000 that I’ll be depositing into a new cash ISA (which I will then transfer to Santander) not be considered ‘new’ money? I fear this is where my plan falls down.

masonic

drob4 said:

Daliah said:

drob4 said:

Thanks for the reply.

My plan was to open a new cash ISA with a new provider and pay in £10000. I would then open a new Santander ISA (to benefit from their new offer) and transfer the £10000. A quick Google suggests this isn’t possible (unless there is a distinction between ‘opening’ and ‘funding’ a new isa).

If you have not put new money into any cash ISA since April 6 this year, you can do exactly as you describe. There is indeed a distinction between opening and funding ("subscribing to") an ISA.

Be aware though that once your new ISA has been transferred to the Santander Fixed Term one, you have only got a very small window to maximise your 2022-23 ISA contribution to a cash ISA.  

Would the £10000 that I’ll be depositing into a new cash ISA (which I will then transfer to Santander) not be considered ‘new’ money? I fear this is where my plan falls down.

Yes, but you are only paying this new money into one cash ISA, so this is allowed.