Annual ISA limit.

traceyaj

Hi, I am getting confused regarding the £20,000 annual limit. I hoped to invest £10K in a fixed rate Isa with Santander in the next day or two.  Later this financial year I hope to have another £10K to invest hopefully in another fixed rate ISA. The application form suggests that I can only invest in one cash Isa per year. I find this confusing as I would not go over the £20K annual limit. Can anyone clarify where I stand on this please? 

TheBanker

You are only allowed to add new money (subscribe) to one cash ISA in a tax year. So if you put £10k in a fixed rate ISA which does not accept further deposits, then you won't be able to use the other £10k of your allowance for a cash ISA. 

There are some providers who treat all cash ISAs held by the same customer as a single account (sometimes called a Portfolio ISA), so you could do what you want with one of those providers, but I don't think Santander are one of them. The only mainstream provider I know who offer this type of product is Nationwide, but there are probably others. 

GrubbyGirl_2

TheBanker said:

You are only allowed to add new money (subscribe) to one cash ISA in a tax year. So if you put £10k in a fixed rate ISA which does not accept further deposits, then you won't be able to use the other £10k of your allowance for a cash ISA. 

There are some providers who treat all cash ISAs held by the same customer as a single account (sometimes called a Portfolio ISA), so you could do what you want with one of those providers, but I don't think Santander are one of them. The only mainstream provider I know who offer this type of product is Nationwide, but there are probably others. 

I believe Paragon treat all their ISA's as a single envelope but worth checking first.

OP I would suggest putting your £10k in an easy access cash ISA until you have the whole £20k invested in it then transfer the lot into a fixed ISA 

Albermarle

traceyaj said:

Hi, I am getting confused regarding the £20,000 annual limit. I hoped to invest £10K in a fixed rate Isa with Santander in the next day or two.  Later this financial year I hope to have another £10K to invest hopefully in another fixed rate ISA. The application form suggests that I can only invest in one cash Isa per year. I find this confusing as I would not go over the £20K annual limit. Can anyone clarify where I stand on this please? 

There is a sub forum for ISA's. If you spend some time reading through that then it should bring you up to speed on ISA rules/limits/transfers etc .
ISAs & tax-free savings — MoneySavingExpert Forum

Beddie

GrubbyGirl_2 said:

OP I would suggest putting your £10k in an easy access cash ISA until you have the whole £20k invested in it then transfer the lot into a fixed ISA 

I would agree, this is the best thing to do if you want to use the full £20k allowance.