ISA Split Query

daveoc22 · 19 April 2018 at 8:47AM

We're in the new tax year and there is a potential £20,000 that can be put away. I'm unsure on this though:

1) If I were to put £10,000 into Zopa's ISA could I also put £10,000 into RateSetters ISA.

or

2) If I put £10,000 into Zopa's ISA could I also put £10,000 into a Bank/Building Societys cash ISA.

I'm confused and would appreciate an answer.

Thanks

eskbanker · 19 April 2018 at 10:13AM

You can pay new money into no more than one of each type of ISA in any given tax year, where the four defined types are:

Cash [although some providers allow multiple products to count as one]
S&S
Innovative finance (P2P)
Lifetime

so you can't pay into two IFISAs but can pay into a IFISA and a cash ISA.

daveoc22 · 19 April 2018 at 11:16AM

Thanks eskbanker, that explains it perfectly.

congokeith · 20 April 2018 at 8:24AM

hi eskbanker
i have an isa which is above fsc compensation limits and wish to fully fund it again this year
1) i can open a new isa with 20k plus a partial transfer
2) question can i then open another with a zero balance (i think santander and others do this ) and transfer the remaining balance thus i have not funded two isa in the same year just made a transfer to one
that way i can get 2 within protection linits
i have not been concerned so far as i use big name banks who i doubt are going to fold
but the best rates now are with new small banks and i dont have the sane confidence
with thanks

eskbanker · 20 April 2018 at 10:34AM

congokeith wrote: »

i have an isa which is above fsc compensation limits and wish to fully fund it again this year
1) i can open a new isa with 20k plus a partial transfer
2) question can i then open another with a zero balance (i think santander and others do this ) and transfer the remaining balance thus i have not funded two isa in the same year just made a transfer to one
that way i can get 2 within protection linits

Yes, transfers aren't affected by the rules on contributing new money (as long as you follow the receiving provider's transfer process), so you can do what you like with previous years' contributions - if you had, say, £90K in one cash ISA you could open nine new ones this year and transfer £10K into each if you felt like it!

However, you may wish to consider whether it's appropriate to hold so much in cash ISAs, given their poor rates which effectively guarantee that your money is losing its value to inflation. If you're likely to need that money in the short to medium term then fair enough but if it's unlikely to be needed for a long time then it may be worth looking at S&S ISAs for at least some of it....

ISA Split Query

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