My take on cash ISA's

Vacationer1

This is my first attempt at a forum, I started an ISA with Trading 212 in November 2024 out of necessity rather than an informed choice. I have to say the process was a lot easier than I anticipated. Now here we are approaching a new financial year.My take on the "Cash ISA" is that I can start a new Cash ISA in April this year and leave the 1st ISA to run and run for as long as I wish to leave it in the account. I believe that I can start a new Cash ISA from Aril 6th, can you please advise me if I'm correct in my interpretation. Last part could I open the 2nd Cash ISA with Trading 212? Many thanks

refluxer

Yes - from 6th April, you'll be able to make use of your 2025-26 tax year £20k ISA allowance. 

As your current Trading 212 is an easy access cash ISA, you have the choice of either topping up this one at any time during that tax year or opening another (or others) with a different provider. 

I'm not sure whether Trading 212 would let you open a second cash ISA with them but even if they did, there would be no advantage in doing so when you can simply top up the existing one.

eskbanker

Vacationer1 said:

This is my first attempt at a forum, I started an ISA with Trading 212 in November 2024 out of necessity rather than an informed choice. I have to say the process was a lot easier than I anticipated. Now here we are approaching a new financial year.My take on the "Cash ISA" is that I can start a new Cash ISA in April this year and leave the 1st ISA to run and run for as long as I wish to leave it in the account. I believe that I can start a new Cash ISA from Aril 6th, can you please advise me if I'm correct in my interpretation. Last part could I open the 2nd Cash ISA with Trading 212? Many thanks

Not sure what you mean by 'out of necessity rather than an informed choice' but did you use your entire £20K allowance for 2024/25?  If so, then yes, you can only pay more in to this or another ISA on or after 6 April, but if you still have headroom this year, you can pay into this or others before then....

PRAISETHESUN

Currently, ISA rules allow for £20k new xontributions each financial year, but existing money doesn't count so you can move that around as you see fit. The rules also currently allow you to open as many cash ISAs as you wish, subject to providers allowing you to open new accounts with them.

There's no reason why you can't keep consolidating your ISA accounts if you'd rather keep everything in one place. Just make sure to transfer using the prescribed transfer process to your preferred ISA rather than withdrawing and depositing yourself.