ISA in new tax year with a different provider

thebeak

Hello,
(Standard ISA not shares)
Can you have an ISA 1 year with a provider, then in the new tax year open another ISA with a different provider, whist still keeping you old ISA. Or is your only option to add into the old ISA, or transfer the whole lot to another provider. Basically can you have 2?

Thank you

Lokolo

Yes. lol.

But you can only add to one, so don't go adding £1000 to your old one then £2000 to your new one

thebeak

Hello Lokolo,
Please can you give some kind of example, as it's confusing how this works. Thanks for the reply

earlgrey_3

Each year you get an allowance. You can put it with any provider you fancy and can move it whenever you want to any other provider who accepts transfers in. (Not all allow transfers in from other providers but all must allow transfers out.) This year the allowance for cash ISAs is £3000.

In the next financial year, from 6 April, the allowance goes up to £3600. You can put that with the same provider or with another one and can move last year's ISA to them to if you want to. You don't have to put the full amount in but can add to it. You could have each of your annual allowances with 2, 3, 4 or however many different providers you want or all with just one but you can't split a single year's allowance between providers.

For example, if you haven't opened an ISA this year you could open one with Scarborough BS http://www.scarboroughbs.co.uk/savingsandinvestments/products/notice_isa.html#int who are paying 6.3% for 30 days notice and get a form from their website to transfer any other ISAs you have to them - or you can leave them where they are.

thebeak

Thank you Earlgrey.:

You could have each of your annual allowances with 2, 3, 4 or however many different providers you want

Will these separate accounts keep earing you interest each tax year i.e. for years after the first tax year you started the ISA?

jem16

thebeak wrote: »

Thank you Earlgrey.:

Will these separate accounts keep earing you interest each tax year i.e. for years after the first tax year you started the ISA?

Yes they will.

mariegriffiths

Thanks for the Clarification. It is the Scarbourgh that I am transfering to.
They want you to fill in a declaration form for the tranafer, which is a bit strange.
I am going to do two transfers and open a new ISA with them. Will this go into one account?

Milarky

mariegriffiths wrote: »

It is the Scarborough that I am transferring to.
They want you to fill in a declaration form for the transfer, which is a bit strange.
I am going to do two transfers and open a new ISA with them. Will this go into one account?

Yes, if that is what you have asked for, that is how they will set up the new account. There is nothing unusual about being asked to make a declaration to the effect 'This is the only ISA I shall be subscribing to this year'. It is a standard CYA (aka 'due diligence') requirement for ISA providers but it means nothing if all you are doing is a transfer - which is not a subscription. 'Subscription' means new money 'Transfer' means old money - except when it is a transfer of money subscribed in a current year (just to be confusing!)

The thing for people moving an 'old' (existing) ISA to bear in mind is that it should in no way bind you to that new provider and you can then just open an ISA for the current year somewhere else. Exceptions will arise - where a condition of the transfer is that New year's money has to be part of the process - but the general freedom to select a new ISA provider every year remains true.