More than one ISA

scruffian

Hi,

When I opened an ISA before April this year I asked my bank manager about the rules regarding opening more than one ISA and paying up to the limit each year. I was lead to believe that you can only open one Mini cash ISA a year, and the maximum you can pay into it each year is £3000, but you can pay £3000 into more than one ISA per year.

I suspect that maybe I misunderstood this, becasue it doesn't seem to fit with other advice I have heard.

What would happen if you tried to do this?

Thanks
Ben

lipidicman

You cannot pay into more than one mini cash ISA (mcISA) per year. It sounds like you think that as long as you dont OPEN more than one you will be OK, but you are wrong. As soon as you pay a single pound into one mcISA you cannot pay into any other mcISA that year

grumbler

scruffian wrote:

I was lead to believe that you can only open one Mini cash ISA a year, and the maximum you can pay into it each year is £3000

This is correct

, but you can pay £3000 into more than one ISA per year.

This is not

What would happen if you tried to do this?

Nothing but trouble. Don't try

P.S. See ISA Guide in the blew box above.

lipidicman

Beatya grumbler! Knew you'd be along soon, so I posted quick

scruffian

thank you. i'm off to look for a good saving account then!

lipidicman

I notice you said you did it BEFORE april - before april the 6th?

If so we are in the next TAX year now (6th April to 5th April) so you can have another ISA now!

scruffian

yeh but wouldn't it make more sense to pay another £3000 into my old isa as you tend to get better rates when you have more money in the account?

grumbler

scruffian wrote:

yeh but wouldn't it make more sense to pay another £3000 into my old isa as you tend to get better rates when you have more money in the account?

Yes, it would. However, remember - you can always transfer your old ISA(s) to a new provider with better rate.

lipidicman

scruffian wrote:

yeh but wouldn't it make more sense to pay another £3000 into my old isa as you tend to get better rates when you have more money in the account?

Probably. My point was that I didn't know if you knew that we were into the new tax year, you probably did though.....it was just that you said you were off to find an ordinary savings account......

scruffian

Oh I see. Thanks anyway. No I need an ordinary saving account for "all my other money". I wish.

lipidicman

Ok cool. So you paid in £3k before april 6th and £3k since then and now you want to save some more, right?