Query about ISAs - answers needed in the next few days please!!!

ryanguevara1983

I have a question about ISAs - and I would be very grateful of any answers before the deadline!!!

I know that everybody has an annual entitlement, about £3000.

Say, for example, I have an ISA with Egg, with £3000 in it for the tax year 2007 to 2008. Can I then open another ISA, with a different company, for the year 2008-9 and just leave the money in the Egg account??

Or does it have to be transferred?

Basically, can you have a different ISA for each Tax year, or must balances be transferred if you want a different account??

Many Thanks.

Lokolo

Can open different ones each year.

I had an Egg one same as you, with £3000 in. But this year I am going to open a Barclays ISA and put money in that, leaving my Egg one as it is.

By the way its going upto £3600 from april 6th.

ryanguevara1983

I was thinking about doing the exact same thing - thanks!!

But we can't keep adding to the Egg one right? It has to stay at £3000?

Lokolo

Yes, interest will be put on it automatically which you are allowed to keep in there but just don't add more money yourself.

Jake'sGran

Don't know what the EGG one is paying at the moment but each year I try to find one paying a good rate that will allow "transfers in". Not all of them do. If you did that you could transfer in the Egg one when you start the new one. You have reminded me that I must start shopping around. The Nat West one looked good but I have an idea it includes a bonus and I would rather have savings rate that is straightforward, i.e. where you do not need to remember that it is going down after twelve months.

Lokolo

The Egg account pays 6.05%, quite good for an easy access account.

Barclays pay 6.5% without allowing transfers in.

A lot of 6%+ are fixed, wouldn't be good for moi as I do not have bulk money apart from last years ISA.

KiKi

Ryan - just to be clear on something. If you open a NEW ISA this year and add to it, then you can't add to the Egg one in the *same* financial year.

However, if you *didn't* open a Barclays one, you could add the £3600 to the Egg one this year instead.

You can only add the max amount to ONE ISA in any one financial year, but you don't need to open a new one each year...you can add to the same one.

KiKi

wiseman405

your better of sticking to one surely. Interest on £3000 and £3600 will be less than £6600 in total

Correct me if i am wrong. But am sure it would be best to mount one up rather than several?

Hungerdunger

wiseman405 wrote: »

Correct me if i am wrong. But am sure it would be best to mount one up rather than several?

I'm afraid you're wrong. You could have £10k invested in one account, or £1k invested in each of ten accounts, and as long as they all paid the same rate of interest, you'd end up with exactly the same amount.

maypole

Hungerdunger wrote: »

I'm afraid you're wrong. You could have £10k invested in one account, or £1k invested in each of ten accounts, and as long as they all paid the same rate of interest, you'd end up with exactly the same amount.

And you don't really want your eggs all in one basket.

Lavendyr

It's a very common misunderstanding but Hungerdunger is absolutely right.