Add Money to existing cash ISA or open a new one in the new tax year

Fatboydel888

Hi,

I recently opened a Virgin Cash ISA and added the maximum amount before the end of this tax year. I plan to do the same when the new tax year starts. Do I just add the funds to the existing account, or do I need to open a new account? Can I have 2 accounts with the same company, in different tax years?

refluxer

You can add more during the next tax year if it's an Easy Access Cash ISA but if it's a Fixed Rate then you would need to check the T&C's, as most don't allow further contributions or transfers beyond the initial funding window.

I open a new Cash ISA every tax year and keep them separate - this takes a bit more managing but gives far more flexibility and keeps things simple, preventing many of the issues you'll see people asking about here, including issues around keeping the current tax year's contributions together and (longer term) not exceeding the £85k FSCS limit. I do tend to (mostly) open Fixed Rate ISAs though, so keeping them separate allows you to adopt a ladder system by taking them out at different times of the year and/or for different durations - if you're just wanting a simple easy access account which will earn tax free interest, then keeping all your money in one place might make more sense.

You can have as many ISAs as you like with as many different providers as you like - the key thing is that you're only making new contributions to one cash ISA at any one time during the tax year. 

So, in short, you can add next year's allowance to an existing Virgin Easy Access Cash ISA from April 6th or open a new one, either with Virgin or any other provider you choose.

Fatboydel888

OK thanks for the response. The one I have is a fixed rate one, so I will open a new fixed rate account with whoever has the best rate after 6th April. I would have gone with Barclays, but they are impossible to deal with. I wanted one in this financial year, but you have to open it in Branch and there are no appointments available in any local one before the end of May.

refluxer

Yes, I get the impression their Flexible ISA is aimed at existing customers really, although I don't think it's an actual restriction. It's certainly an account that's a lot easier for existing customers to open.

You can apply for a Barclays Flexible ISA online but, judging by other posts, you need access to online banking so one workaround is to open a current account first which will give you access to online banking and you can then open one from there without the need for a branch visit. I'm a Barclays customer and definitely have the option to open one from their banking app.

Fatboydel888

It’s not worth the effort, given the Virgin rate is almost the same.

sparkiemalarkie

Fatboydel888 said:

OK thanks for the response. The one I have is a fixed rate one, so I will open a new fixed rate account with whoever has the best rate after 6th April.

I wonder if it might be possible to open a fixed rate ISA this side of 5th April (if you see a really good interest rate) and wait until the new tax year to fund it. Many providers give 30+ days to fund a new account (some don't however.). That way you have more options.
I opened several ISAs, when the rates were moving fast, and decided on the one I wanted to keep once things had settled. - I opened several but funded 1...therefore keeping within the ISA rules.....
Just a thought

sx