Cash ISA..more than one account !
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sam1970
Posts: 1,195 Forumite
I have just opened a cash ISA account with a building society and transferred all my ISA savings into it (£85000). This amount includes £15000 for the current tax year. Obviously I still have another £5000 to save this year but do not want to exceed the £85000 protection limit with the same bank. Can I open another ISA account with another bank this year to deposit the other £5000?
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No you can't, at least not a cash ISA.I have just opened a cash ISA account with a building society and transferred all my ISA savings into it (£85000). This amount includes £15000 for the current tax year. Obviously I still have another £5000 to save this year but do not want to exceed the £85000 protection limit with the same bank. Can I open another ISA account with another bank this year to deposit the other £5000?
An option might be to open a cash ISA elsewhere and then ask them to do a £5K partial transfer of previous years contributions from the £85K balance ISA. Once that's complete you could add the £5K to lift the other back up to £85K.0 -
Not with another provider - you'd need (the new provider)to transfer the £15k balance of this years ISA across, too.
If you wanted to retain the full ISA allowance for this tax year, you could put it in a S&S ISA ( you can leave it in cash in the S&S isa if you wish) and then transfer it out to any cash ISA next tax year.
Indeed you could leave this until near the end of the tax year to do it, and take advantage of higher rate non wrapped accs in the mean time.0 -
Thank you guys. Opening another account with the same provider defeats the object as I will not be protected if they collapse. Not to keen on S&S as I dont have the knowledge. It looks like I might have to lose the £5000 allowance for this year0
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Have you considered contributing the £5k into another type of ISA such as S&S? Do you really need to be holding £90k cash at a below inflation return? If you can commit sone of the money into a long term investment then it stands a good chance of at least beating inflation.
Alex0 -
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Either YorkshireBoy's or soulsaver's suggestions would work - in YorkshireBoy's case your current ISA must be one which allows partial transfers (without penalty).Thank you guys. Opening another account with the same provider defeats the object as I will not be protected if they collapse. Not to keen on S&S as I dont have the knowledge. It looks like I might have to lose the £5000 allowance for this year
Or you could take a hybrid approach and leave depositing the last £5000 with your current ISA provider until the very last days of the current tax year and then transfer it (as what would then be previous year's funds) to a new provider in the very first few days of the new tax year.
You would exceed the £85,000 protection limit (by £5000) for a few days until the transfer takes place, but as you'd be making the deposit and arranging the transfer over a short period of time you should have a good feel for the risk of your current ISA provider collapsing in the short period between deposit and transfer.
If your newly opened cash ISA is one which imposes penalties for early withdrawal/transfer you'll need to take that into account before deciding what to do."In the future, everyone will be rich for 15 minutes"0 -
Thank you guys. Opening another account with the same provider defeats the object as I will not be protected if they collapse. Not to keen on S&S as I dont have the knowledge. It looks like I might have to lose the £5000 allowance for this year
That is no real loss, cash ISAs are well beyond their sell by date.0 -
Thank you eachpenny. My ISA account is fixed for 5 years so any withdrawal will be heavily penalised. I like your idea of adding the £5000 in the last few days of the tax year. I might open another easy access ISA with the same provider in March to deposit the £5000 and then move it to a new provider in April.0
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So long as your existing provider allows you to do that it should work with relatively little risk.Thank you eachpenny. My ISA account is fixed for 5 years so any withdrawal will be heavily penalised. I like your idea of adding the £5000 in the last few days of the tax year. I might open another easy access ISA with the same provider in March to deposit the £5000 and then move it to a new provider in April.
If you have an old easy access ISA (e.g. pre-2018/19) then you might want to use that for the £5000 transfer as you could set the arrangements up in advance.
For that kind of situation I've kept an old Nationwide cash ISA open simply to use as a 'container' to manage transfers. Anything maturing is transferred to the Nationwide ISA. Since it is flexible, the money is usually then withdrawn and decanted into non-ISA savings accounts paying a higher rate of interest.
Some of that money will go back into the Nationwide ISA just before the end of the tax year for no reason other than to maintain the potential capacity of the ISA. (In case I need to use it in the future)"In the future, everyone will be rich for 15 minutes"0 -
Thank you eachpenny. My ISA account is fixed for 5 years so any withdrawal will be heavily penalised. I like your idea of adding the £5000 in the last few days of the tax year. I might open another easy access ISA with the same provider in March to deposit the £5000 and then move it to a new provider in April.
Where is the money currently? Do you have a pot of money outside ISAs that you're moving in? As mentioned above it may be worth looking at other types of ISA as holding everything in cash isn't a great strategy over the long termRemember the saying: if it looks too good to be true it almost certainly is.0
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