Opening multiple ISA accounts

EverythingCounts

Hello all

I’m thinking of doing the following but just wanted reassurance here that it’s possible and there is no issue with this approach…

I currently have a fixed rate cash ISA that’s about to mature within the next week.

I’m planning on transferring it to another fixed rate cash ISA for a one year term, probably later next week. This ISA has a 30 day period once opened where I can pay money into it, so I’ll be limited what I can pay in within that time.

After April 6th I want to open another cash ISA account that will allow me to pay in continuous monthly amounts, not decided on which one yet.

I also want to open a S&S ISA after April 6th and again pay in monthly amounts as I go.

So I’ll end up with two cash ISAs (although I’ll only be paying into one during 26/27) and a S&S ISA. Does that all sound okay, any issues with doing that?

eskbanker

As far as the ISA rules and regulations themselves are concerned, there's no problem with funding multiple ISAs concurrently, as long as total contributions don't exceed £20K in any tax year.

As ever, check the terms of any products you're looking at, in case of any restrictions applicable at that level.

flaneurs_lobster

You can have as many Cash/S&S ISAs as you like, as long as the total amount of new subscriptions paid into any/all of them does not exceed £20k in any one financial year.*

Some ISA managers will not allow you to hold more than one ISA with them but that's only a limitation on their own products.

*This changes in 27/28 when new limits on cash ISAs are due to be implemented.

EverythingCounts

Thanks for the responses, I just need to decide on which ISA accounts now.

I’ve only had ISA accounts with high street banks up until now, looking at the current rates it seems the app accounts are offering better, the likes of Plum and Moneybox. Having never had an account with one of these app based products is there anything I need to be aware of, anything different? I see that your money is protected by FSCS up to £120000 so is everything else the same as a normal bank ISA?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81919304#Comment_81919304

Just check the details, those headline-grabbing, table-topping rates can disappear overnight (or even more annoyingly, increase the day after you secure them). The hot rates tend to be for the variable products not so much the fixed-term ones.

You may find that the provider needs you to sign up as an investment customer (slightly more involved, profiling, KYC) before you can have the cash ISA product.

There may be fixed-term products that allow contributions throughout the term, Barclays certainly used to do one.

EverythingCounts

Thanks again.

Yes if I can find a decent fixed rate account that allows continuous paying in then that’s what I’m after.