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Can a cash ISA only be funded in the year of opening?

Hello ISA experts

I would like to know if I open an ISA now for the 23/24 year can I still pay into it in 24/25 and open another ISA in 24/25 and fund that also?

Many thanks.
MFWB
Mortgage when started: £232,000
Current mortgage Sept 2024: £232,000
Mortgage free day: Sept 2029

Saving: £12k 2025

Comments

  • eskbanker
    eskbanker Posts: 35,331 Forumite
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    You can continue to pay into an ISA for as long as it accepts deposits (which varies from product to product), and, from the start of 2024/25, can pay into multiple ones in parallel, subject to the overall £20K annual contribution limit.
  • $17mma
    $17mma Posts: 2,623 Forumite
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    eskbanker said:
    You can continue to pay into an ISA for as long as it accepts deposits (which varies from product to product), and, from the start of 2024/25, can pay into multiple ones in parallel, subject to the overall £20K annual contribution limit.
    Thank you, sorry another question.

    So if I open a 23/24 ISA now I can continue paying in my annual allowance as it was opened in the 23/24 tax year?
    MFWB
    Mortgage when started: £232,000
    Current mortgage Sept 2024: £232,000
    Mortgage free day: Sept 2029

    Saving: £12k 2025
  • eskbanker
    eskbanker Posts: 35,331 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 14 March 2024 am31 11:46AM
    $17mma said:
    eskbanker said:
    You can continue to pay into an ISA for as long as it accepts deposits (which varies from product to product), and, from the start of 2024/25, can pay into multiple ones in parallel, subject to the overall £20K annual contribution limit.
    Thank you, sorry another question.

    So if I open a 23/24 ISA now I can continue paying in my annual allowance as it was opened in the 23/24 tax year?
    As above, you can continue to pay into it for as long as it accepts deposits - most fixed term products will only allow funding for a limited initial window of typically 14-30 days, but easy access accounts can generally be funded on an ongoing basis, for as many years as you wish.  Your allowance of £20K caps your total annual contributions across all ISAs.

    Edit: from subsequent posts, it appears that I misunderstood the question, which was effectively 'can I continue to use my 23/24 allowance in 24/25', to which the answer, as below is 'no'!
  • $17mma said:
    eskbanker said:
    You can continue to pay into an ISA for as long as it accepts deposits (which varies from product to product), and, from the start of 2024/25, can pay into multiple ones in parallel, subject to the overall £20K annual contribution limit.
    Thank you, sorry another question.

    So if I open a 23/24 ISA now I can continue paying in my annual allowance as it was opened in the 23/24 tax year?
    Only if you have not paid into another cash isa.
    Mortgage free
    Vocational freedom has arrived
  • elkiedee
    elkiedee Posts: 106 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    At the moment you can only pay new money into one cash ISA in a financial year including the current one (you can also split your allowance between a cash ISA and a stocks and shares ISA). If you haven't paid money into one in this financial year you could open one, pay in up to £20K and then add up to another £20K in the next financial year. If you've already paid money into one in this year but see one offering a better interest rate (and/or other terms and conditions suit you better), you could apply to open it and transfer in your other ISA (and ones from previous financial years) - so long as it accepts transfers. And then you can carry on using this account in the next financial year, although I understand fixed rate ISAs often only allow you to pay money in for a limited period of time. 

    Next year you will be allowed under ISA rules to split your allowance between more than one cash ISA, though I don't know what the 2024/2025 ISA account providers will offer in terms and conditions in this sense.
  • armistice
    armistice Posts: 117 Forumite
    Part of the Furniture 100 Posts Photogenic Combo Breaker
    $17mma said:
    eskbanker said:
    You can continue to pay into an ISA for as long as it accepts deposits (which varies from product to product), and, from the start of 2024/25, can pay into multiple ones in parallel, subject to the overall £20K annual contribution limit.
    Thank you, sorry another question.

    So if I open a 23/24 ISA now I can continue paying in my annual allowance as it was opened in the 23/24 tax year?
    The annual contribution limit resets on 6th April. 
    If you have not paid the full £20k into your 23/24 isa by this time the remaining allowance is lost.
  • $17mma
    $17mma Posts: 2,623 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    armistice said:
    $17mma said:
    eskbanker said:
    You can continue to pay into an ISA for as long as it accepts deposits (which varies from product to product), and, from the start of 2024/25, can pay into multiple ones in parallel, subject to the overall £20K annual contribution limit.
    Thank you, sorry another question.

    So if I open a 23/24 ISA now I can continue paying in my annual allowance as it was opened in the 23/24 tax year?
    The annual contribution limit resets on 6th April. 
    If you have not paid the full £20k into your 23/24 isa by this time the remaining allowance is lost.
    This makes it much clearer, just what I was looking for. Many thanks
    MFWB
    Mortgage when started: £232,000
    Current mortgage Sept 2024: £232,000
    Mortgage free day: Sept 2029

    Saving: £12k 2025
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