Cash ISA question

MerlinTheCat

sorry, might be a bit of a silly question but....

I'm thinking of opening a new cash ISA and dropping about £10k in it immediately and then topping it up as and when I can.  Not sure which provider yet.

However, I already have a cash ISA with Virgin, which i opened last year and its due to mature in September.  It has the full £20k allowance in it.

If I open a new ISA now with £10k in it, what do I so with the other one, given the max allowance per tax year is £20k, when it matures.   Presumably I can't transfer that to another ISA because it will take me over the limit ?    

Bit confused.   
thanks

TheMilkmansDad

£20k as the limit for new money. as long as you transfer and do not withdraw/close and redeposit you'll be fine.

wmb194

MerlinTheCat said:

sorry, might be a bit of a silly question but....

I'm thinking of opening a new cash ISA and dropping about £10k in it immediately and then topping it up as and when I can.  Not sure which provider yet.

However, I already have a cash ISA with Virgin, which i opened last year and its due to mature in September.  It has the full £20k allowance in it.

If I open a new ISA now with £10k in it, what do I so with the other one, given the max allowance per tax year is £20k, when it matures.   Presumably I can't transfer that to another ISA because it will take me over the limit ?    

Bit confused.   
thanks

It’s an ANNUAL allowance of £20k. When the Virgin ISA matures you can transfer that £20k plus interest to another ISA with Virgin or elsewhere but make sure you use the official ISA transfer process, don’t e.g., withdraw the cash to a current account. You’ll still have £10k from this year’s allowance to deposit somewhere.

 There’s an ISA sub-forum with lots of information.

Aretnap

MerlinTheCat said:

If I open a new ISA now with £10k in it, what do I so with the other one, given the max allowance per tax year is £20k, when it matures.   Presumably I  can't transfer that to another ISA because it will take me over the limit ?    

Yes you can. The £20K limit applies to new ISA money - ie money paid in from outside an ISA. Transfers from one ISA to another don't count towards it, so long as you use the "proper" ISA transfer process.

Just don't withdraw it to your current account then try to pay it all in to the new ISA - that way it will count towards the £20K.

If you want to let there money all in one place eventually check that the new ISA accepts transfers - not all do.

Albermarle

wmb194 said:

MerlinTheCat said:

sorry, might be a bit of a silly question but....

I'm thinking of opening a new cash ISA and dropping about £10k in it immediately and then topping it up as and when I can.  Not sure which provider yet.

However, I already have a cash ISA with Virgin, which i opened last year and its due to mature in September.  It has the full £20k allowance in it.

If I open a new ISA now with £10k in it, what do I so with the other one, given the max allowance per tax year is £20k, when it matures.   Presumably I can't transfer that to another ISA because it will take me over the limit ?    

Bit confused.   
thanks

It’s an ANNUAL allowance of £20k. When the Virgin ISA matures you can transfer that £20k plus interest to another ISA with Virgin or elsewhere but make sure you use the official ISA transfer process, don’t e.g., withdraw the cash to a current account. You’ll still have £10k from this year’s allowance to deposit somewhere.

 There’s an ISA sub-forum with lots of information.

In fact this is in the ISA subforum, and a read through it would be good for the OP to improve their knowledge of ISAs.

MerlinTheCat

Brilliant, thank you all for your comments, much appreciated