Transfer Cash ISAs Discussion Area

ejv

lkslacka wrote: »

Can I have two ISAs open with different providers as long as the total amount deposited does not exceed the limits?

Nope...:(

http://www.isa.co.uk/isa-knowledge-base/how-many-isas-can-you-have.aspx

blueberrypie

lkslacka wrote: »

Can I have two ISAs open with different providers as long as the total amount deposited does not exceed the limits?

You must keep all of the current year's ISA subscriptions together.

As you have already subscribed to a cash ISA for the current tax year, you have three options open to you:
- put the rest of your allowance into the ISA you already hold and leave it there
- put the rest of your allowance into the ISA you already hold, then transfer the whole lot to another provider
- transfer your £1 to another provider, then top that up to the maximum allowance.

You can *have* as many ISAs as you want, but you cannot split your allowance for the current year across more than one ISA.

lkslacka

Thanks very much and also for the link.

If I just make sure I completely understand... The existing ISA was opened during the 10/11 financial year. If I had not deposited the £1.00 during the current financial (11/12) I could have opened (subscribed ?) another ISA for this years contribution. But as a result of the £1.00 being paid during the existing financial year, I MUST transfer this value into another account if I don't want to deposit the balance into the the existing ISA.

Would it make a difference if I closed the existing ISA altogether?

Thanks again.

blueberrypie

ejv wrote: »

Nope...:(

http://www.isa.co.uk/isa-knowledge-base/how-many-isas-can-you-have.aspx

I don't like that link. Apart from the allowance figures being well out-of-date, it says you can only "open" one ISA of each kind each year - which is simply wrong. You can only *subscribe* to one ISA of each kind each tax year, but you can *open* as many as you want.

ejv

blueberrypie wrote: »

You can only *subscribe* to one ISA of each kind each tax year, but you can *open* as many as you want.

Sorry, I saw the link was bit outdated for the allowance amount, but thought was Ok for rest of the info..

What is the difference between "subscribing" and "opening"?

Say for eg, what lkslacka has asked:
Our allowance is £5340 for this F yr. Could we put £2000 in Santander, £2000 in Natwest and £1340 in Nationwide this F yr ie open 3 ISAs totalling to maximum in same F yr?

I have always put to a single provider each F yr , hence never had this question, but I shouldn't be misleading a newbie:o

KTF

Subscribing = putting money in (up to the annual allowance).
Opening = opening.

i.e. you can open as many ISAs as you like but only pay money into one.

For example. You open an ISA with NatWest and pay money in. Later on in the year a new ISA comes along with a better rate. You can then open this ISA and transfer the money from the first ISA over but you cannot open this ISA then pay money into it so you have the allowance split between 2 ISAs in 1 year.

blueberrypie

ejv wrote: »

What is the difference between "subscribing" and "opening"?

Say for eg, what lkslacka has asked:
Our allowance is £5340 for this F yr. Could we put £2000 in Santander, £2000 in Natwest and £1340 in Nationwide this F yr ie open 3 ISAs totalling to maximum in same F yr?

I have always put to a single provider each F yr , hence never had this question, but I shouldn't be misleading a newbie:o

You can open as many ISAs as you want in any year. Your subscriptions - i.e. your *new* money - for the current year must stay together - but you can transfer them. So you can open one or more ISAs for previous years' subscriptions, splitting them up however you want, and you can open an ISA and put part of this year's subscriptions into it, and then open another ISA and transfer all of the subscriptions-so-far into it, and put some more into that up to the annual allowance, and then you could open another ISA and transfer all of your subscriptions for the current tax year into that.

"Subscribe" = putting in new money (money that is not being transferred from another ISA, using the ISA transfer process).

lkslacka can't do what he proposes, because he'd be spreading the *current* year's subscriptions over more than one ISA. But he can certainly move the current year's subscriptions around, as long as he keeps them together, and he can certainly open further ISAs for previous years' subscriptions.

blueberrypie

lkslacka wrote: »

Thanks very much and also for the link.

If I just make sure I completely understand... The existing ISA was opened during the 10/11 financial year. If I had not deposited the £1.00 during the current financial (11/12) I could have opened (subscribed ?) another ISA for this years contribution. But as a result of the £1.00 being paid during the existing financial year, I MUST transfer this value into another account if I don't want to deposit the balance into the the existing ISA.

Yes. Except...

Would it make a difference if I closed the existing ISA altogether?

There is a "loophole" which allows you to completely close an ISA which holds subscriptions for the current year and open a second ISA with the current year's allowance. Have a look at the second loophole described in this article: http://www.moneywise.co.uk/news/2009-09-25/could-you-cash-isa-loophole

ejv

Thanx KTF and blueberrypie.

So, I'm I right in assuming----our current allowance cannot be split between different providers till the end of current F yr ie there should be only one provider for this F yr's money....but may be split/sliced/minced among any numbers thereafter(ie when it is "old")

I wonder what's the reason behind this?

lkslacka

Hello,

Thanks for clarifying subscribe/opening KTF and thanks blueberrypie for the link about the loopholes - I think I understand my options now.

Sorry my queries were rather specific as I only have a few days before I will be internet and phone -less until after the new financial year and there is a risk that my current provider will take longer than that to finalise the transfer process... I had been trying to avoid having to transfer if at all possible, while still ensuring I had used up my allowance and secured a better rate. It would have been easier to simply look into this a few weeks ago.

Thanks again.