Multiple ISAs

satlad

I have an ISA that matures in October (opened last financial year). I have not opened an ISA this year, I want and don't want to wait until October.

Can I open an ISA now for the full £20000, then in October open another ISA and transfer in last year's ISA adding no extra funds, only the transfer.
I would haven effectively opened 2 ISAs in the same financial year, but only add 20k this year.

Stubod

Yes you can open a new ISA of £20k this financial year. 

You would have to "transfer" your other ISA assuming your new provider allows "transfers in". 

ie you can't simply open another one then take the money out of your existing one and put that in...

squirrelpie

I transferred a cash ISA from one Nationwide product to a different one this year. I confess I was surprised at how difficult they made I found the process and I'm now left with an empty ISA from last year, which seems untidy. What I'm trying to say is check the mechanics of the particular provider's transfer process carefully.

pinnks

Not sure what you have done, and I agree that Nationwide is one of the most clunky online "banks" I have experienced but if you transfer an ISA, and select to transfer everything, the institution sending the money will close the old account.  It sounds as though you may not have asked for what you thought you had asked for?
 

badmemory

Unfortunately the Halifax has followed in the clunky path.  I have had to do my latest by that modern invention the post.  The previous one that I did online they took 4 days to move & used some of the then current years £20k.  this one was not possible to do online.  I remain unamused.

satlad

Stubod said:

Yes you can open a new ISA of £20k this financial year. 

You would have to "transfer" your other ISA assuming your new provider allows "transfers in". 

ie you can't simply open another one then take the money out of your existing one and put that in...

The issue with this is that I want to open a ISA now and it will probably have a time limit of 14 days to put the money in then it will be locked, but my existing ISA doesn't mature until October so I won't be able to transfer in to the new ISA. So the question is can I then open another ISA in October and transfer in when in matures in October? Effectively opening two ISA in the same financial year.

Albermarle

satlad said:

Stubod said:

Yes you can open a new ISA of £20k this financial year. 

You would have to "transfer" your other ISA assuming your new provider allows "transfers in". 

ie you can't simply open another one then take the money out of your existing one and put that in...

The issue with this is that I want to open a ISA now and it will probably have a time limit of 14 days to put the money in then it will be locked, but my existing ISA doesn't mature until October so I won't be able to transfer in to the new ISA. So the question is can I then open another ISA in October and transfer in when in matures in October? Effectively opening two ISA in the same financial year.

Yes you can, the only limit is no more than £20K in new contributions in a tax year.

By the way there is an ISA forum, where there are lots of similar questions and answers, so worth reading through there.

ISAs & tax-free savings — MoneySavingExpert Forum