Maxi ISA

MSA67

I have several thousand pounds which I have worked hard to save and I want to open a new Maxi Cash ISA with it. I already have one maxi cash ISA, my question is, do I have to open a new account to fill with my savings or can I just transfer that money into the old Maxi ISA?

Not sure if this question has been answered in the FAQs already or if I'm missing something obvious, any help is greatly appreciated

MSA

EDIT: Just read this in the FAQs:

How much can I save in an ISA?

There are no upper limits to how much you can hold in an ISA. There are limits on how much you can deposit into an ISA in each tax year. These are:
£3,000 in a Mini Cash ISA and
£4,000 in a Stocks & Shares ISA
or
£7,000 in a Maxi ISA, of which no more than £3,000 can be in the Cash component.

So that answers my question really, my next one is; is there any advantage to opening a new account instead of just adding to an old one?

Ian_W

The mini/maxi distinction goes next month. From 6/4/08 you'll be able to contribute £7200pa to ISAs but no more than £3600 can be in a cash ISA.
If you've got the money now you could open one [or contribute to the existing one] up to this years limit before then and still have all of next years allowance usable.

is there any advantage to opening a new account instead of just adding to an old one?

Depends on the rate of the existing one. If it's good then No, if not too good then getting a better rate is a an advantage. There's a list of best buys on THIS THREAD.
You can also transfer your existing one to another provider with better rates if that is the case, though not all best buy providers allow transfers in.

MSA67

Many thanks Ian,

I have an ISA with the RBS but the interest rate isn't the best. Having had a look at the thread you suggested I think the Loyds TSB mini cash ISA sounds like the best deal.

What I might do (and I'd appreciate your thoughts on this) is transfer some money into my RBS ISA to make it up to over £9000 (using up my 07/08 allowance) and then transfer it to a Lloyds TSB account (which means I qualify for the higher rate of 6.5%).

I can then use the rest of my money to open another ISA, after 6th April, with Lloyds - using up my 08/09 allowance.

Sound like a plan?

Cheers

MSA

Ian_W

MSA67 wrote: »

What I might do (and I'd appreciate your thoughts on this) is transfer some money into my RBS ISA to make it up to over £9000 (using up my 07/08 allowance) and then transfer it to a Lloyds TSB account (which means I qualify for the higher rate of 6.5%).
I can then use the rest of my money to open another ISA, after 6th April, with Lloyds - using up my 08/09 allowance.
Sound like a plan?

Oh, yes indeedy!

Get the money in quick up to the max and over £9K - then open the LTSB Fixed rate ISA and transfer across. You'll be able to simply add next years allowance on or after 6/4/08 to the existing FR-ISA, rather than needing to open another.
The transfers into LTSB are taking a while in some cases but, unlike many providers, they'll backdate the interest to the date your money left RBS, so no loss of interest in transit.
With IRs likely to go down during the year IMO 6.5% is a good fixed rate. Don't leave it there though after the year if [and I'm guessing they won't!] LTSB don't offer another good rate.

BoL.