ING Direct Cash ISA

Smoggie69 · 2 May 2013 at 1:00PM

I currently have an ING Direct Cash ISA, into which I made my last deposit on 2nd April. The interest for April has been added on the 30th, but I can't make deposits this tax year. Rather than transferring my ISA, can I close the ING account and open a new ISA from scratch, depositing the money from my old ISA, via my bank account?

Scarpacci · 2 May 2013 at 1:26PM

You can but you lose a year's allowance. You would be using up this year's allowance unnecessarily to pay in money you already have locked away in an ISA wrapper. So for new money this tax year, you would be limited to the difference between the ISA amount and this year's limit.

So it's generally not advisable to do this. The only reason would be if you're confident you will have no money to deposit this year, and/or the new ISA you're going for does not allow transfers in and pays a better rate than those that do. If those conditions don't apply, it makes more sense to open a new one and transfer using the proper transfer forms. Many ISAs do not require any "new" money, so you don't even need to worry about extra money right now.

Smoggie69 · 2 May 2013 at 6:55PM

I only have £600 in there, and will only be adding £100 each month. I thought that with an amount of this size it wouldn't matter to withdraw it and open a new ISA without transferring.

david78 · 3 May 2013 at 7:42PM

If you are sure you dont want to add more than about £5000 this tax year (£100 per month is only £1200) then just withdraw and pay into a new Cash ISA.

ING Direct Cash ISA

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