Can I subscribe to 2 different ISAs?

sultan123

As it is new tax year, I want to open a New ISA. Currently 1 year fixed rates are less than 5% so can I put money into variable rate ISA and then open a new fixed rate ISA when rates hit 5% and move over the variable rate ISA into fixed rates ISA.

I have seen following variable rate ISA but it says only 1 subscription per tax year allowed? 

https://www.principality.co.uk/savings-accounts/isas/Online-ISA

Castle

sultan123 said:

As it is new tax year, I want to open a New ISA. Currently 1 year fixed rates are less than 5% so can I put money into variable rate ISA and then open a new fixed rate ISA when rates hit 5% and move over the variable rate ISA into fixed rates ISA.

I have seen following variable rate ISA but it says only 1 subscription per tax year allowed? 

https://www.principality.co.uk/savings-accounts/isas/Online-ISA

To me that reads that you can only subscribe to one ISA with "Principality" each year, nothing about subscribing to other Banks/Building Societies ISA's. ("Moving" or transferring ISA's are not subscribing).

refluxer

sultan123 said:

As it is new tax year, I want to open a New ISA. Currently 1 year fixed rates are less than 5% so can I put money into variable rate ISA and then open a new fixed rate ISA when rates hit 5% and move over the variable rate ISA into fixed rates ISA.

I have seen following variable rate ISA but it says only 1 subscription per tax year allowed? 

https://www.principality.co.uk/savings-accounts/isas/Online-ISA

While the government has now done away with the previous rule about only being able to pay new subscriptions from the current tax year into one cash ISA at any one time, it's possible that some ISA providers may decide to still limit you to one, just as before.

It's also possible that providers haven't updated their ISA product pages or T&Cs yet to reflect the new ISA rule changes, especially with the 6th of April not being a normal working day for many of them.

As mentioned above though, if some do still limit you to one, there's nothing to stop you opening multiple cash ISAs for new subscriptions with other providers.

As for using an easy access cash ISA temporarily before moving into a fix - that strategy may have worked while rates were rising last year but it's less likely to now, as rates have been falling and are predicted to continue to fall this year and beyond. A number of ISA providers have already re-launched their cash ISAs today (after pausing new applications last week) at lower rates than previously. This is especially noticeable with 1 year fixed rates - Kent Reliance, Charter and Zopa have all dropped their 1 year fixed rate cash ISAs down below 5% so it'll be interesting to see whether any others re-appear at 5%+. Aldermore looks to be the only one so far but there are still some who haven't relaunched their's yet (including Secure Trust, Hodge and Shawbrook) so it might be worth waiting until at least Monday to see what happens.

gravel_2

Why do you expect fixes to return to or above 5%? Zopa and Aldermore seems to be the last men standing at 5% and it seems unlikely many other providers will return to that level.

dunstonh

as the rule only changed on 6th April and Friday was the 5th April, its likely that providers have yet to update their websites etc to reflect the new rules.

Albermarle

Currently 1 year fixed rates are less than 5% so can I put money into variable rate ISA and then open a new fixed rate ISA when rates hit 5%

Or go lower....