Am I allowed to open a 2nd ISA?

Tate65

I've already opened a cash ISA this year and put the full allowance in.

I've just seen that Legal and General pay £110 cashback on Quidco if you open a share ISA with them, though.

The question is - am I allowed to open an ISA with them too? I know I can't open another cash ISA as I'm up to my limit, but am I allowed to open a shares ISA if the total I put in to all my ISAs is below the £7,200 limit? Or can you only open a cash ISA OR a shares ISA?

I'm only thinking about putting £50-£100 a month in as (a) there's £110 cashback and (b) with the markets quite low it could be a decent time. So my total ISA investments for the year will be below the share ISA limit - I've just not opened two ISAs in one year before.

Tate65

Thanks Al - I just checked around a bit and found the same answer her, for anyone that wants to know:

http://www.moneysupermarket.com/ISA/GuideToIsas.asp

I thought it was the case - just wasn't 100% certain!

Time to open a Legal and General ISA and get £110 cashback! If it tracks, though - my brother opened one last week and it's not tracked yet.

RayWolfe

The very worst reason to open a S&S ISA is because you are getting a cashback.
I hope you have other reasons to want to invest in the stock markets.

Tate65

RayWolfe wrote: »

The very worst reason to open a S&S ISA is because you are getting a cashback.
I hope you have other reasons to want to invest in the stock markets.

Yes, you're quite right, but I'm happy to open a tracker with the markets at the current level - if they go down further then I just get more units for my monthly contribution.

I manage my own SIPP, have funds in another ISA from a few years ago and used to dabble in individual shares. So I'm pretty well aware of what investing in the stock market entails.

I've just been opting to go for cash ISAs mainly as then I have access to the cash if I need to, but hearing that I can get £110 cashback for just putting £50 a month into a tracker fund it sounds worthwhile.

I'd probably not have considered it without the cashback as I'm not currently wanting to tie up a lot in the markets and I'd normally not think £50/month was that exciting an investment. Also I didn't know that once I had a cash ISA I could still have a shares ISA - I just never looked into it.

So yes, just cashback isn't the best reason to invest in something, but it is an area I'm comfortable/experienced in and am happy for the money to be tied up for 5+ years. It could be that an L&G tracker isn't the best fund out there, but I've got oodles in emerging markets, natural resources, BRIC funds - plus loads in more traditional areas - and I'm quite happy with a tracker for now.

RayWolfe

That's great to hear. There are some folk who don't understand the implications of "marketing techniques". Sorry to have doubted you but I was just trying to give you help that you do not need.

Milarky

RayWolfe wrote: »

The very worst reason to open a S&S ISA is because you are getting a cashback.
I hope you have other reasons to want to invest in the stock markets.

Go easy RW. This is £110 for as little as £50 per month. At £50 per month until the cashback is paid the risk of loss is minimal. If (like me) you don't use annual S&S ISA allowances because there are much better (i.e. flexible) ways of investing with modest sums anyway, then it is an open drawer. So much discussion has occurred around this particular offer in the last year that I'm surprised it doesn't now have the status of a MSE 'loophole' (with the implication that it is a largely risk free device to obtain a pecuniary advantage)?

RayWolfe

Well, given the fall in the FTSE ALLSARES during the first six months of this year alone, how much would have been lost from a £50 per month investment?
Whilst in some markets the scheme may be money for old rope, in this market one may need a reason greater than a cashback. I think the OP did approach this correctly but, as you know all that glisters is not gold ...

Tate65

RayWolfe wrote: »

That's great to hear. There are some folk who don't understand the implications of "marketing techniques". Sorry to have doubted you but I was just trying to give you help that you do not need.

That's ok - you made a good point!

catmeow_2

This seems like a fairly low risk option?? Am I missing something? Assuming I deposit £50 a month for say 3-4 months then top it up to the £500 and withdraw, the likelihood of losing more than £110 is lowish? I freely admit I am a novice so feel free to point out bluntly if I'm missing something!!! (Especially if it's obvious!)

dunstonh

A FTSE tracker is has a level of risk where it is possible to lose upto around 50% in a 12 month period... potentially. So, whilst unlikely to see a 50% drop from now, it is possible.

EdInvestor

Are there any other fund choices in the L&G S&S ISA or must it be a FTSE tracker?

S&S ISAs don't require you to invest in the stockmarket - they are actually poorly named. You can also invest in bonds, gilts, property and mixed funds which may have quite a low risk profile.

What choices does L&G offer?