Having multiple ISAs as of next month

Daniel1111

Under the new rules, we are allowed to have multiple Cash ISAs as of 06 April 2024. Can I check - if I open a new ISA next week (that allows transfers in within 30 days, ie past 06 April) but leave it dormant until after 06 April, is this allowed? I would only have cash in one Cash ISA until the 06 April date, but I want to open a new one now while some interest rates are still good.

Thanks!

surreysaver

Would have thought so, as it will be based on new money each tax year.
I'm intending to to put £15k in my Principality Flexible ISA, and using Zopa or Chip as an instant access for the rest, as they're Flexible ISAs, which will protect my Individual Savings Allowance for higher paying Regular Savers, hoping to pay as little tax as possible on my interest next year 

Rich2808

This change is long overdue and will massively reduce the complexity for savers - and also for providers.

No issues like I had recently where I requested a prior tax year ISA transfer (I took a copy of the form I sent) but the new provider requested a current year ISA transfer from my old provider - which was processed on that basis. I was none the wiser until I asked my old provider why I needed to make a new ISA declaration to make payments into an ISA I had already paid into earlier this tax year.  Hopefully now resolved after several calls (still awaiting a letter confirming this) but might have meant I had two cash ISAs invested in one tax year and also been unable to exercise my full £20k allowance (unless I paid into a S&S isa etc instead). What you may ask to be done to your new provider - and what actually happens in the transfer between providers - may not be one and the same! 

All I will say is be very wary of certain well known providers offering a high fixed rate - the admin issues and stress may not be worth it. Hopefully the new rules will avoid this happening - or at least it will be easier for savers to take corrective action personally!

ColdIron

The changes will hugely benefit those that used part of their allowance to open a fix and then find that they can't use the rest of their allowance unless they are very lucky with their provider

There are a few other changes from April worth noting

1. You can make partial transfers of current year's subscriptions. This complements the change to multiple ISAs
2. For old ISAs with no contributions you wont need to make a fresh ISA application, or for new ISAs you won't need to confirm that you have made no subscriptions elsewhere
3. Fractional shares in an ISA
4. 16/17 year olds will no longer be able to open an adult ISA
   

MDMD

Daniel1111 said:

Under the new rules, we are allowed to have multiple Cash ISAs as of 06 April 2024. Can I check - if I open a new ISA next week (that allows transfers in within 30 days, ie past 06 April) but leave it dormant until after 06 April, is this allowed? I would only have cash in one Cash ISA until the 06 April date, but I want to open a new one now while some interest rates are still good.

Thanks!

Just to be clear you are already allowed to have multiple cash ISAs, what you can’t currently do (except in a few cases) is pay new money into more than one at once.

DJSINGH

ColdIron said:

The changes will hugely benefit those that used part of their allowance to open a fix and then find that they can't use the rest of their allowance unless they are very lucky with their provider

There are a few other changes from April worth noting

1. You can make partial transfers of current year's subscriptions. This complements the change to multiple ISAs
2. For old ISAs with no contributions you wont need to make a fresh ISA application, or for new ISAs you won't need to confirm that you have made no subscriptions elsewhere
3. Fractional shares in an ISA
4. 16/17 year olds will no longer be able to open an adult ISA
   

For point 2. Does it mean that I can open a fixed ISA now and not fund until April 6, and not worry about resubscribing faff? (Virgin 5.25)

Rich2808

DJSINGH said:

ColdIron said:

The changes will hugely benefit those that used part of their allowance to open a fix and then find that they can't use the rest of their allowance unless they are very lucky with their provider

There are a few other changes from April worth noting

1. You can make partial transfers of current year's subscriptions. This complements the change to multiple ISAs
2. For old ISAs with no contributions you wont need to make a fresh ISA application, or for new ISAs you won't need to confirm that you have made no subscriptions elsewhere
3. Fractional shares in an ISA
4. 16/17 year olds will no longer be able to open an adult ISA
   

For point 2. Does it mean that I can open a fixed ISA now and not fund until April 6, and not worry about resubscribing faff? (Virgin 5.25)

Yes - as Virgin allows transfer requests and payments in up to 30 days after that particular issue has closed. So that should - if opened in a few days - guarantee you should be able to make a payment in post 6 April.

I couldn't comment on your choice of provider - but as they say at PMQs I refer you to the reply I gave earlier!

Daniel1111

Transferring ISAs doesn't need to be done in the current year, right?

My ISA fixed rate that expires at the end of the month, I can just leave it dormant until April when I open a new fixed and transfer it then, without it affecting my new 20k allowance in another ISA elsewhere - or does the transfer need to happen before 6 April?

DJSINGH

Daniel1111 said:

Transferring ISAs doesn't need to be done in the current year, right?

My ISA fixed rate that expires at the end of the month, I can just leave it dormant until April when I open a new fixed and transfer it then, without it affecting my new 20k allowance in another ISA elsewhere - or does the transfer need to happen before 6 April?

Why leave it dormant? If theres a decent fix available when this one ends, then move it as soon as. Its not new money, so makes no difference when you transfer it.

Daniel1111

DJSINGH said:

Daniel1111 said:

Transferring ISAs doesn't need to be done in the current year, right?

My ISA fixed rate that expires at the end of the month, I can just leave it dormant until April when I open a new fixed and transfer it then, without it affecting my new 20k allowance in another ISA elsewhere - or does the transfer need to happen before 6 April?

Why leave it dormant? If theres a decent fix available when this one ends, then move it as soon as. Its not new money, so makes no difference when you transfer it.

Because I've already been saving into an ISA this year so I don't think I'm allowed, am I?

DJSINGH

Daniel1111 said:

DJSINGH said:

Daniel1111 said:

Transferring ISAs doesn't need to be done in the current year, right?

My ISA fixed rate that expires at the end of the month, I can just leave it dormant until April when I open a new fixed and transfer it then, without it affecting my new 20k allowance in another ISA elsewhere - or does the transfer need to happen before 6 April?

Why leave it dormant? If theres a decent fix available when this one ends, then move it as soon as. Its not new money, so makes no difference when you transfer it.

Because I've already been saving into an ISA this year so I don't think I'm allowed, am I?

Yes you can transfer it. Its not "new money"..ensure to use the ISA transfer method.