any point opening up an isa now? (with 20k opening deposit)

Hello

Is there any point opening an ISA and putting in 20k? I have some savings and would like to open 2 and with 20k each? Is there any benefit to doing this or should I wait till the new financial year starts?
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  • Brie
    Brie Posts: 9,208
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    Well if you open one now you can put in £20k now and another £20k in April.  Same one or different.  
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • ColdIron
    ColdIron Posts: 8,635
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    edited 27 January at 10:32PM
    Is there any point opening an ISA and putting in 20k?
    If you want to open an ISA, open one. What do you perceive as the advantage of waiting?
    I have some savings and would like to open 2 and with 20k each? Is there any benefit to doing this or should I wait till the new financial year starts?

    If you wait you will only be able to put in £20,000

  • elkiedee
    elkiedee Posts: 38
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    So long as you haven't paid money into another ISA, yes, open it now. The benefits are that you will get an extra 2 months interest, and that if you have more money available or will have over the next year, you will still have up to another £20K allowance for 2024/25.

    If you are planning to add money in the next tax year, check that the ISA you open allows you to do so. If it doesn't, you can open a new ISA for 2024/25.

    If you have already paid into another ISA, then you'd need to apply to transfer (for example, for a better rate of interest), and again, you need to check whether your chosen account allows transfers.  
  • elkiedee
    elkiedee Posts: 38
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    Oh, and your ISA allowance is £20K/financial year so to start 2 separate accounts with £20K in each you'd need to open one this financial year (as long as you haven't already paid into an ISA this year) and one at the start of the 2024/25 year. If you already have any money in ISAs that you want to move you need to apply for a transfer rather than taking it out of an account and paying it into another one yourself.
  • moneysavvy35
    moneysavvy35 Posts: 421
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    ColdIron said:
    Is there any point opening an ISA and putting in 20k?
    If you want to open an ISA, open one. What do you perceive as the advantage of waiting?
    I have some savings and would like to open 2 and with 20k each? Is there any benefit to doing this or should I wait till the new financial year starts?

    If you wait you will only be able to put in £20,000


    moneysavvy35 said: thank you. Im not sure....I am a high earner, just  wondering about the tax that may (or maynot) be paid on it.
  • ColdIron
    ColdIron Posts: 8,635
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    There is no tax on ISA interest, that's the entire point
  • moneysavvy35
    moneysavvy35 Posts: 421
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    elkiedee said:
    Oh, and your ISA allowance is £20K/financial year so to start 2 separate accounts with £20K in each you'd need to open one this financial year (as long as you haven't already paid into an ISA this year) and one at the start of the 2024/25 year. If you already have any money in ISAs that you want to move you need to apply for a transfer rather than taking it out of an account and paying it into another one yourself.
    I see - thank you. OK will open one now, put the 20k in. then open another in april
  • Martico
    Martico Posts: 907
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    elkiedee said:
    Oh, and your ISA allowance is £20K/financial year so to start 2 separate accounts with £20K in each you'd need to open one this financial year (as long as you haven't already paid into an ISA this year) and one at the start of the 2024/25 year. If you already have any money in ISAs that you want to move you need to apply for a transfer rather than taking it out of an account and paying it into another one yourself.
    I see - thank you. OK will open one now, put the 20k in. then open another in april
    Or put another 20k into the existing one in April, you don't need a new one each year
  • moneysavvy35
    moneysavvy35 Posts: 421
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    xylophone said:
    thanks...was having a read - think I may go for the charter bank one
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