Isas - a question

Caz39

Hi
I'm completely new to the art of saving with Isa's and have a few questions if anybody can help me?
I put £3000 in an Ing Isa last year, do I now just leave it there and open another one this year or do i have to move it from there to an ordinary savings acc then open another Isa this year?

Thanks
Caroline

jem16

You have a few options;

1. Leave it there to accrue tax-free interest year after year and open a brand new ISA elsewhere.

2. Add another £3600 to the Ing ISA this year if it's still a competitive interest rate.

3. Transfer the ING ISA if it does not have a good interest rate to a better paying one that accepts transfers in. Then add this year's allowance of £3600.

Whatever you do don't close it and put it into a savings account or you lose the tax-free status forever.

espresso

Caz39 wrote: »

Hi
I'm completely new to the art of saving with Isa's and have a few questions if anybody can help me?
I put £3000 in an Ing Isa last year, do I now just leave it there and open another one this year or do i have to move it from there to an ordinary savings acc then open another Isa this year?

Thanks
Caroline

You can either top it up with this years allowance now £3600 or leave it and open a new one or open a new one and transfer your old ISA to the new one with a better rate, providing that it accepts transfers in e.g. here.

Baldur

Caz39 wrote: »

I put £3000 in an Ing Isa last year, do I now just leave it there and open another one this year or do i have to move it from there to an ordinary savings acc then open another Isa this year?

You can leave it where it is or transfer it to a different ISA Manager that offers a better rate - see this post for Cash ISAs which permit inward transfers (scroll down). DO NOT close or withdraw your ISA funds, or the tax benefits will be lost & you'll have to start again - the new ISA manager should apply for any transfer, not yourself.

You can also start a new Cash ISA for this tax year (up to £3,600) with any ISA manager.

Caz39

Thanks for the info, It's all so much clearer now!
Cheers