Transfer and Open new ISA in Same Tax Year?

Paul_N_4

I was under the impression that you could only open one cash ISA each tax year. So if you wanted to take advantage of the high rates on the non-transfer in ISA accounts, you had to leave your previous ISA balance in whatever account you opened the previous year.

But someone told me you could open more than one ISA each tax year as long as you only contribute a max of £3600 into one of them (or between them).

So the question is this:

Can I open up a new cash ISA account and transfer in my current balance AND open up a second new cash ISA account and place £3600 in it, both in the next tax year beginning 6th?

Obviously I'm wanting to take advantage of these high rate deals for non-transfer in, but not at the detriment of leaving my whole balance in a poor paying account.

RayWolfe

Yes. A transfer is not a new ISA so you can do both.

PBA

The restriction is that you can only deposit money in to one ISA in any one year, so you can open more than one ISA in a year as long as you only deposit in to one of them.

Having said that, isn't the difference between the best non-transfer-in and transfer-in account 0.25% (6.5% vs 6.25%). That would get you an extra £9 interest over the year on £3600. Not worth the extra hassle IMHO.

dollywops

Before I do anything, I just want to make sure I am doing everything correctly.

Myself, DH, DS and DD all have ISA's with NS&I. With their current interest rate, it is not sensible to stay with them.

I am keen to to take out a 1 year fixed with B&B, but can only do this for 3 of us, as DD is not 18.

So, can I open new ISA's with B&B, for 3 of us and also find a new provider to transfer the existing ISA's from NS&I, and also find a provider who will accept my daughter?