Inactive Cash ISA

papalazarou

Apologies stupid questions!

I have an inactive cash ISA (Halifax) that I've had for years and not used so it is currently inactive. The balance is next to nothing (3p) and the interest rate is currently very low. (1.10%). 

I am looking at paying my full allowance into a cash ISA before the end of the current tax year but there are obviously a lot better offers out there. 

Is there any point in transferring the old one over or can I just close this account and open a new one that offers better rates? (Transferring can take 15 days which takes me past 5th April).

wmb194

papalazarou said:

Apologies stupid questions!

I have an inactive cash ISA (Halifax) that I've had for years and not used so it is currently inactive. The balance is next to nothing (3p) and the interest rate is currently very low. (1.10%). 

I am looking at paying my full allowance into a cash ISA before the end of the current tax year but there are obviously a lot better offers out there. 

Is there any point in transferring the old one over or can I just close this account and open a new one that offers better rates? (Transferring can take 15 days which takes me past 5th April).

No, you can open and make deposits to as many Isas as you like but you need to make sure you keep within the £20k per tax year allowance.

papalazarou

wmb194 said:

papalazarou said:

Apologies stupid questions!

I have an inactive cash ISA (Halifax) that I've had for years and not used so it is currently inactive. The balance is next to nothing (3p) and the interest rate is currently very low. (1.10%). 

I am looking at paying my full allowance into a cash ISA before the end of the current tax year but there are obviously a lot better offers out there. 

Is there any point in transferring the old one over or can I just close this account and open a new one that offers better rates? (Transferring can take 15 days which takes me past 5th April).

No, you can open and make deposits to as many Isas as you like but you need to make sure you keep within the £20k per tax year allowance.

Thank you, but I can only open one a year right? so if I reactivated the old one and transferred the 3p before closing it, would it count as opening one or would it be best to open the new one first then close it.

I think I can just close the old account without reactivating but then I'd probably lose 3p and 3p is 3p right?

jimjames

papalazarou said:

wmb194 said:

papalazarou said:

Apologies stupid questions!

I have an inactive cash ISA (Halifax) that I've had for years and not used so it is currently inactive. The balance is next to nothing (3p) and the interest rate is currently very low. (1.10%). 

I am looking at paying my full allowance into a cash ISA before the end of the current tax year but there are obviously a lot better offers out there. 

Is there any point in transferring the old one over or can I just close this account and open a new one that offers better rates? (Transferring can take 15 days which takes me past 5th April).

No, you can open and make deposits to as many Isas as you like but you need to make sure you keep within the £20k per tax year allowance.

Thank you, but I can only open one a year right? so if I reactivated the old one and transferred the 3p before closing it, would it count as opening one or would it be best to open the new one first then close it.

I think I can just close the old account without reactivating but then I'd probably lose 3p and 3p is 3p right?

No, you can open as many as you want as long as you stick to the £20k limit. Withdraw the 3p, no need to transfer it. There is no ISA concept of reactivation, an account either exists or doesn't and is either this tax year or previous. Any activity on an old ISA account has no bearing on your current year subscriptions.

Ayr_Rage

papalazarou said:

wmb194 said:

papalazarou said:

Apologies stupid questions!

I have an inactive cash ISA (Halifax) that I've had for years and not used so it is currently inactive. The balance is next to nothing (3p) and the interest rate is currently very low. (1.10%). 

I am looking at paying my full allowance into a cash ISA before the end of the current tax year but there are obviously a lot better offers out there. 

Is there any point in transferring the old one over or can I just close this account and open a new one that offers better rates? (Transferring can take 15 days which takes me past 5th April).

No, you can open and make deposits to as many Isas as you like but you need to make sure you keep within the £20k per tax year allowance.

Thank you, but I can only open one a year right? so if I reactivated the old one and transferred the 3p before closing it, would it count as opening one or would it be best to open the new one first then close it.

I think I can just close the old account without reactivating but then I'd probably lose 3p and 3p is 3p right?

You can open more than one ISA a year under the latest rules, try a search!

Just close the old ISA and they will send you the balance.

FrugaiMacDugal

papalazarou said:

I think I can just close the old account without reactivating but then I'd probably lose 3p and 3p is 3p right?

Plus the interest, all tax free.

papalazarou

Thank you all. I have now closed the old ISA down and reclaimed my 3p. Currently looking at new account options to move some money. 

A (kind of) related question...

I don't know enough about S&S ISA's to feel comfortable putting money into one at the moment so I'm going to go with a decent cash ISA for this years allowance. I'm planning on doing some research though. If I was to then open a S&S ISA on the 6th April with next years full allowance would I also be also be able to transfer money from my cash ISA at the same time? 

For example:
Open a cash ISA today with 20,000
6th April - Open a S&S ISA with 20,000
7th April - Transfer 10,000 from cash to s&s

slinger2

That would be ok