ISA Transfer Question

Moneysaver100

During this financial year I would like to open 2 seperate cash ISA accounts with 2 different providers so that I can put my 08/09 £3,600 allowance in one and in the other I would like to transfer some balances for previous years. The reason I would like to use 2 accounts is that the one paying the best rate for me this year does not accept transfers in. I would like to transfer balances from previous years as they are now offering unfavourable rates.
Is this legal and will a provider open an account this year and accept only previous years balances in?

10_66

Yes, you can open an ISA for this year's contribution, and you can transfer your existing funds to another provider, as long as they permit transfers in (not all providers do permit transfers in). Make sure you arrange the transfer through the new provider, don't try transferring the funds yourself. You might also wish to check if there are any penalties for transferring from your existing ISA provider.