Advice on opening multiple cash ISAs

Yamahaxyz

Hi All,

I recently opened a Virgin fixed 1 year cash isa and had the funds in my ISA from the previous year transferred into it.

I hadn’t realised that with the Virgin fixed cash isa, it was only possible to deposit funds within 30 days of opening the account.  This is not ideal for me as I will not be able to save to the ISA limit (20k) by the end of next month.

Accordingly, I plan to transfer the funds currently in the Virgin cash ISA into a new easy access isa (probably the trading 212 one) and deposit up to the ISA limit over the tax year.  

I understand there is no longer a prohibition against opening multiple cash ISAs in a single year and that the penalty for the above course of action is the loss of 2 months of interest.  

I’d be grateful for any advice as to whether there is a better way of achieving my aim of being able to deposit up to the isa limit in a cash isa this year. The course of action I’ve proposed above is OK but not perfect as it results in a loss of some interest.

thanks in advance

JGB1955

Why not leave the money in the fixed rate ISA and open an easy/limited access one, either with Virgin or with another provider, for the funds you want to contribute during the current tax year?  No point losing the 2 months of interest if you don't need to access the funds for the remaining fixed term.

mebu60

Leave the Virgin fixed ISA as is, open a new EA cash ISA with whoever for 24/25.  

Yamahaxyz

Hi JGB1995 and Mebu60,

Thank you for your responses. 

I was under the impression that even though you could now open multiple cash ISAs in a single year, you could only contribute to one of each type in the same tax year.

It appears that that understanding is incorrect and so I’ll do as you both suggest and leave the Virgin ISA as is, and open a new easy access cash isa.  

mebu60

Previous year's contributions do not count if transferred in. 

eskbanker

Yamahaxyz said:

I was under the impression that even though you could now open multiple cash ISAs in a single year, you could only contribute to one of each type in the same tax year.

It appears that that understanding is incorrect

Indeed - that was the situation before the change of rules at the start of this tax year, but they were relaxed from 6 April.

badger09

Yamahaxyz said:

Hi All,

I recently opened a Virgin fixed 1 year cash isa and had the funds in my ISA from the previous year transferred into it.

I hadn’t realised that with the Virgin fixed cash isa, it was only possible to deposit funds within 30 days of opening the account.  This is not ideal for me as I will not be able to save to the ISA limit (20k) by the end of next month.

Accordingly, I plan to transfer the funds currently in the Virgin cash ISA into a new easy access isa (probably the trading 212 one) and deposit up to the ISA limit over the tax year.  

I understand there is no longer a prohibition against opening multiple cash ISAs in a single year and that the penalty for the above course of action is the loss of 2 months of interest.  

I’d be grateful for any advice as to whether there is a better way of achieving my aim of being able to deposit up to the isa limit in a cash isa this year. The course of action I’ve proposed above is OK but not perfect as it results in a loss of some interest.

thanks in advance

BIB
Precisely which Virgin FRISA did you open & when. 

The 1 year FRISA Exclusive allows deposits up to 30 days after product is withdrawn. 

If that’s not the one you opened, you could pay the balance up to your £20k into a FRISA with another provider if you wish.