how do I open an ISA for £9000?

davep101

Hi People

There is most likely a simple answer to this one, but as I understand it you are allowed to open one cash ISA of £3600 per year (total annual allowance £7200)
The thing that is confusing me is for example Lloyds TSB is offering a fixed rate ISA of AER6.50% per annum with a minimum investment of £9000.
Now if my maximum allowance is £3600 how do I open an ISA for £9000?

Thanks David

Baldur

davep101 wrote: »

Hi People

There is most likely a simple answer to this one, but as I understand it you are allowed to open one cash ISA of £3600 per year (total annual allowance £7200)
The thing that is confusing me is for example Lloyds TSB is offering a fixed rate ISA of AER6.50% per annum with a minimum investment of £9000.
Now if my maximum allowance is £3600 how do I open an ISA for £9000?

Thanks David

By transferring in previous years' ISA funds - if you don't have previous Cash ISAs, you can't. The top 6.5% Lloyds TSB ISA rate has reportedly been withdrawn in any case and a reduced rate offered from Monday.

davep101

Hi Baldur

Thanks for the reply;

By that do you mean transferring previous years ISA’s into the one account or transferring the cash from previous ISA’s into this years ISA?

David

Baldur

davep101 wrote: »

Hi Baldur

Thanks for the reply;

By that do you mean transferring previous years ISA’s into the one account or transferring the cash from previous ISA’s into this years ISA?

David

You can do either, as long as your new ISA provider accepts transfers but 'this year's ISA' relates to NEW money (up to £3,600) paid into a Cash ISA since 6th April 2008 until 5th April 2009.

If you combine past years funds with new funds they are still legally 'previous years' ISA funds' while the new money is 'current year's ISA funds'.

davep101

Hi Baldur

That’s great I can now see how it works thanks for your help, just need to find a good ISA now!!

David