Duplicate Fixed Rate Cash ISAs from same provider in same year

Ictoanuk

Hi,

I save money for my Grandsons (2) for when they are adults. I don't want them to have access to these savings until they are over 18yrs (potentially mid 20's) and therefore the savings are in my name alone. 

They are different ages so I started saving for them at different times in different accounts, resulting in a hotch-poch of different accounts as I have tried to get the best rates available at different times. Three accounts are due to mature this month (two split 50/50, one 1/3 and 2/3 between them) and I am hoping to set up two Fixed Rate Cash ISAs, one for each of them, to try and simplify their savings and to avoid potentially exceeding my Savings Tax Allowance.

My question is, which Banks or Building Societies allow individuals to open two identical ISAs in the same year (at the same time), with a competitive rate? Not sure if relevant, I have not made any ISA contributions this tax year to my existing Cash ISA, only interest has been added. I know the rules changed to apparently allow this, but not many Banks or Building Societies seem to offer it, and it seems to be a big secret.

Thanks in anticipation.

El_Torro

You can certainly open as many Cash ISAs as you want with different banks. I'm not sure whether a bank will allow you to open two separate Cash ISAs with them though. I know that some banks allow you to have different "pots" for savings accounts, I haven't seen that offered for ISAs though. 

I guess you could put one ISA with one bank and another with a different bank. Though you might not find two ISA providers providing exactly the same interest rates.

Why not just leave all the money in the same ISA and keep track of who gets what from it?

eskbanker

Ictoanuk said:

My question is, which Banks or Building Societies allow individuals to open two identical ISAs in the same year (at the same time), with a competitive rate? Not sure if relevant, I have not made any ISA contributions this tax year to my existing Cash ISA, only interest has been added. I know the rules changed to apparently allow this, but not many Banks or Building Societies seem to offer it, and it seems to be a big secret.

I'm not sure it's a big secret as such, but suspect that nobody's taken it on themselves to generate a list and, more importantly, maintain it - it should be expected that over time more institutions will make the necessary system changes, etc, and start to offer multiple concurrently-funded ISAs.  Checking each one's Ts & Cs would be a bit laborious but not prohibitive - assuming you've started your research from the best-paying accounts, which ones have you ruled out so far?

Ictoanuk

eskbanker said:

Ictoanuk said:

My question is, which Banks or Building Societies allow individuals to open two identical ISAs in the same year (at the same time), with a competitive rate? Not sure if relevant, I have not made any ISA contributions this tax year to my existing Cash ISA, only interest has been added. I know the rules changed to apparently allow this, but not many Banks or Building Societies seem to offer it, and it seems to be a big secret.

I'm not sure it's a big secret as such, but suspect that nobody's taken it on themselves to generate a list and, more importantly, maintain it - it should be expected that over time more institutions will make the necessary system changes, etc, and start to offer multiple concurrently-funded ISAs.  Checking each one's Ts & Cs would be a bit laborious but not prohibitive - assuming you've started your research from the best-paying accounts, which ones have you ruled out so far?

I saw UBL offered a good rate, checked their T&Cs and couldn’t find the answer so messaged them to be told that they didn’t allow it. I have trawled through a couple of other bigger name providers and just struggled to find the info I wanted. Maybe it is just a bit of a niche market hence the lack of enthusiasm to provide the product and also to promote it, if they do. 

Looks like I’ll end up at TSB initially, and hope that in a year or two there are more to choose from. I had hoped someone else may have had similar plans and already found a few providers to choose from. 

Thanks eskbanker for your reply. I will continue the search. 

Ictoanuk

El_Torro said:

You can certainly open as many Cash ISAs as you want with different banks. I'm not sure whether a bank will allow you to open two separate Cash ISAs with them though. I know that some banks allow you to have different "pots" for savings accounts, I haven't seen that offered for ISAs though. 

I guess you could put one ISA with one bank and another with a different bank. Though you might not find two ISA providers providing exactly the same interest rates.

Why not just leave all the money in the same ISA and keep track of who gets what from it?

The main issue is that I am trying to treat both G/sons equally, hence wanting duplicate ISAs paying the same rate. The recent change in ISA rules, as I understand it, mean you can open more than one ISA in a tax year with the same provider, but only a few seem to actually allow/promote this. I think TSB do, but others I have looked at seem to hide that little bit of info, hence my query.

I could just lump it all together in one ISA, but from and admin point of view, if I'm not around, it would be easier if there were two separate a/cs.

Thanks for your reply El Torro. 

Albermarle

If the Grandsons are still not yet teenagers, then you could well do better investing some on the money for them in Stocks and Shares ISA's, rather than just cash ISA's.

Ictoanuk

Albermarle said:

If the Grandsons are still not yet teenagers, then you could well do better investing some on the money for them in Stocks and Shares ISA's, rather than just cash ISA's.

Yes, that’s a consideration. Eldest is nine, youngest 4, so plenty time to ride the ups and downs and hopefully end up ahead. 

Thanks Albermarle for your reply. 

Shedman

I've certainly been able to open two of the same issue Fixed ISA with Virgin Money, although I have only ever eventually funded one of them so not sure if there would be a problem funding both

(the only reason I've opened second ones is because, after I had opened the first one to hold the rate but didn't fund it/transfer in straightaway,  when I wanted to actually transfer an ISA in it was easier to open the 2nd one and initiate the transfer in during the application process rather than send in paper forms)

refluxer

Ictoanuk said:

Looks like I’ll end up at TSB initially, and hope that in a year or two there are more to choose from. I had hoped someone else may have had similar plans and already found a few providers to choose from. 

If you're wanting a competitive rate, then you can do a fair bit better than TSB's current fixed rate cash ISAs by looking elsewhere and if finding a provider who'll let you open multiple cash ISAs with them is proving difficult, why not choose two different providers and open one with each ? With online account applications and account management these days, it really isn't that much more hassle and the benefit of the higher rates will be worth it.

I've had various fixed rate cash ISAs with some of the current top-payers like Shawbrook, Cynergy and Charter in recent years and have had no major issues. They're current paying around 0.50% (or more) than TSB.

Two ISA providers who definitely do let you open multiple cash ISAs with them are Nationwide and Paragon, but their rates aren't particularly competitive at the moment.

badger09

Shedman said:

I've certainly been able to open two of the same issue Fixed ISA with Virgin Money, although I have only ever eventually funded one of them so not sure if there would be a problem funding both

(the only reason I've opened second ones is because, after I had opened the first one to hold the rate but didn't fund it/transfer in straightaway,  when I wanted to actually transfer an ISA in it was easier to open the 2nd one and initiate the transfer in during the application process rather than send in paper forms)

BIB
There would indeed be a problem paying into both in the same tax year as VM don’t allow it. 

jimjames

Ictoanuk said:

Albermarle said:

If the Grandsons are still not yet teenagers, then you could well do better investing some on the money for them in Stocks and Shares ISA's, rather than just cash ISA's.

Yes, that’s a consideration. Eldest is nine, youngest 4, so plenty time to ride the ups and downs and hopefully end up ahead. 

Thanks Albermarle for your reply. 

It would also make it much simpler as you wouldn't need to be checking rates each year and could hold 2 identical trackers but from different fund providers to make it easy to know which is for which child.