Split ISA

throughtheblue

I have an easy access savings account and the interest earned, will take me over the £1000 interest tax threshold before the end of the financial year.

I would prefer to use more of my annual ISA allowance, however, as I have HTB ISA with Nationwide, my understanding is that I can only have a cash ISA with them to split my allowance? I prefer monthly interest, which Nationwide don't offer, and also I think their rates are a bit naff. If I have an HTB ISA, can I have cash ISA with another provider or just Nationwide.

If I can't have a cash ISA with a different provider, can I put my remaining ISA allowance into a S&S ISA, then at the start of a new tax year, transfer the S&S ISA to a cash ISA with a provider of my choosing? As it would be a different provider to Nationwide, I might not be able to pay into it in the new tax year, but as it's a transferred allowance from the previous year, I could at least earn interest from it?

masonic

You can have as many ISAs with as many providers as you wish, but all current year cash ISA subscriptions need to remain with Nationwide. I don't think there is any need to use a S&S ISA for this purpose. You could open and fund a Nationwide easy access ISA and transfer it after the end of the tax year to any other provider, with the caveat that you'll get 'naff' interest over that period and it won't be paid monthly. A S&S ISA with money invested in a money market fund for the remainder of the tax year is an option, not quite zero risk, but north of 4.5% interest (variable and not guaranteed) and about as safe as investments get.