Full ISA Guide Discussion Area

molerat

Yes you can open one but you will not be able to contribute to both. You will need to transfer this year's contributions from the current one.

legoanakin

Hello,

Similar question to that above. I opened an ISA in the previous tax year. Can I leave the money in that ISA and open a new one this tax year with a new provider and put the maximum 5340 pounds in?

Any help would be greatly appreciated.

Thank you

System

legoanakin wrote: »

Hello,

Similar question to that above. I opened an ISA in the previous tax year. Can I leave the money in that ISA and open a new one this tax year with a new provider and put the maximum 5340 pounds in?

Any help would be greatly appreciated.

Thank you

Yes you can.

You could also continue to use the same old account and simply make this year's subscriptions into it (but only if the interest rate is competative)

Note, if the old ISA is only paying interest at a low rate, then you should also consider transferring the balance to a new account using the new account provider's transfer forms. (Do not withdraw the funds from the old ISA, use the transfer process)

legoanakin

BAA1 wrote: »

Yes you can.

You could also continue to use the same old account and simply make this year's subscriptions into it (but only if the interest rate is competative)

Note, if the old ISA is only paying interest at a low rate, then you should also consider transferring the balance to a new account using the new account provider's transfer forms. (Do not withdraw the funds from the old ISA, use the transfer process)

Thank you BAA1. Please correct me if I am wrong. I currently have £2,000 in the ISA i opened in the previous financial year. If i leave it in there I can open a new cash ISA this year with a new provider and put £5,340 into that ISA. Giving a total of £7,340 in ISA's.

However, If i transfer the £2,000 into a new ISA then I can only add another £3,340 into that new ISA giving a total of £5,340 in ISA's.

Is this correct?

Ark_Welder

legoanakin wrote: »

Thank you BAA1. Please correct me if I am wrong. I currently have £2,000 in the ISA i opened in the previous financial year. If i leave it in there I can open a new cash ISA this year with a new provider and put £5,340 into that ISA. Giving a total of £7,340 in ISA's.

However, If i transfer the £2,000 into a new ISA then I can only add another £3,340 into that new ISA giving a total of £5,340 in ISA's.

Is this correct?

No. The previous year's ISA does not count towards the current year's contribution limit so you can transfer that ISA, and open one this year and still contribute up to £5430. However, if you do decide to make a transfer to another company then you must make sure that that company does the transfer for you. Otherwise, you will be limited to the 'However, If....' case that you asked in you post. [Edit] Remember that not all providers will accept transfers to all of their accounts, but whether they do or don't will be shown in the T&C's

http://www.hmrc.gov.uk/isa/transfer-isa.htm

System

legoanakin wrote: »

Thank you BAA1. Please correct me if I am wrong. I currently have £2,000 in the ISA i opened in the previous financial year. If i leave it in there I can open a new cash ISA this year with a new provider and put £5,340 into that ISA. Giving a total of £7,340 in ISA's.

However, If i transfer the £2,000 into a new ISA then I can only add another £3,340 into that new ISA giving a total of £5,340 in ISA's.

Is this correct?

As "Ark Welder" said, transferring the previous year's ISA does not go towards this years subscriptions, so you would still be able to make new subscriptions of £5,340 this year.
So, your new account could then have the £2,000 transferred in using the transfer-in form + new subscriptions of £5,340 + any interest earned, giving you £7,340 + interest in your new ISA.

But, just to reitterate...When you open the new ISA account, fill in the ISA transfer form that you can get from the new account provider to transfer the £2K

legoanakin

Thank you both very much for your help. It is very clear now.

t.i.c.h.

The current FSCS for investments is £50K

I have been using up my annual allowance each year since ISAs were born in an equity ISA with the same [big name] provider.

Therefore, I now have well over the £50K limit!

How safe is my equity ISA?

Should I transfer some of that pot of money to a different equity ISA provider, assuming I can just transfer a percentage and not all of it (otherwise what's the point) without losing all the tax free advantages I've built up over the years.

System

t.i.c.h. wrote: »

The current FSCS for investments is £50K

I have been using up my annual allowance each year since ISAs were born in an equity ISA with the same [big name] provider.

Therefore, I now have well over the £50K limit!

How safe is my equity ISA?

Should I transfer some of that pot of money to a different equity ISA provider, assuming I can just transfer a percentage and not all of it (otherwise what's the point) without losing all the tax free advantages I've built up over the years.

Actually the limit is £85K per person

see : http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/

t.i.c.h.

£85K is for deposits but my understanding is that equity ISAs count as investments which is only £50K