Can I open a second isa?

rothchick

Just a very quick one.

I opened a fixed isa in December 2023 and its for a year as I wanted access  to the funds and didn’t want to fix for too long.

My other savings are with chase as it’s so easy to have it in one place. I’m  getting a decent rate at 5.1% ‘boosted’. I am getting concerned that I may reach over £1000 in interest (last tax year was £940) so wondering if I should put some of this in an easy access isa. Is this allowed? I have the full £20k allowance this year but never had more than one isa so not sure if I can do this. 

 I find this all a bit confusing but really don’t want to have pay tax on my savings. (I know Bank of England rate will most likely go down at some
point so this worry might be for nothing)

Thanks

masonic

You've always been able to have more than one ISA. From this tax year, you can open and fund more than one cash ISA per tax year, subject to the overall £20k allowance.

rothchick

Thank you @masonic . I’ve never been in this position so definitely need to be more careful this year. I paid off my mortgage in 2020 and the savings rates were so low for such a long time that it didn’t really affect me. I think maybe transferring £5k-£8k into another cash isa might be a good idea. Rates are not as good as my chase account but this will give me some flexibility as I save a decent amount each month too. 

Bigwheels1111

rothchick said:

Thank you @masonic . I’ve never been in this position so definitely need to be more careful this year. I paid off my mortgage in 2020 and the savings rates were so low for such a long time that it didn’t really affect me. I think maybe transferring £5k-£8k into another cash isa might be a good idea. Rates are not as good as my chase account but this will give me some flexibility as I save a decent amount each month too. 

Look at Chip, their easy access isa is 5.1%.
Tracks at 0.15% below the base rate.