Can I Open Another ISA Account?

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.

Replies

  • masonicmasonic Forumite
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    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.
  • edited 13 September 2022 at 9:09PM
    drob4drob4 Forumite
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    edited 13 September 2022 at 9:09PM
    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).
  • DaliahDaliah Forumite
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    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.  
  • drob4drob4 Forumite
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    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.
  • masonicmasonic Forumite
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    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.
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