Can I have more than one ISA?

Its not so much the openning thats the issue, its the contributions. Example you could open 2 Isas in the same year and only contribute to one. The one that has not been contributed to could be used to perform an isa transfer. This is where pre exsisting money (say for example 2009/10 tax yr money to an up to date product paying better rates) can be moved from one isa account to another. Please note this a different process compared to money transfer such as bacs/chaps/faster payment etc.
 
You can also have a stocks and shares ISA as well as a cash ISA for the current year... though personally I've never invested in a stocks one.
 
Most ISA's have an introductory rate also. ie. 3% for 1 year and then after that drops to 0.1% of some such nonsense.

You can however transfer your money out of that ISA and into a new one (with a better rate) without affecting your limits. You can then pay in on top of this up to the value of the ISA limit for the year.

I have had an ISA which I have been paying my Student loan into every year. Each year I look for the best rate and transfer my current ISA in and then top up again.

Sure I could make more intrest investing differently but it is zero risk and gives me easy access to my money should I need it.

/Salsa
 
I've been meaning to ask this, how do I deposit more than £5400 into an ISA? My banks rates are as below.

Interest rates for customers who open an e-ISA account on or after 15 May 2009
Balance AER
(variable) Gross Rate % p.a. Net Rate % p.a.
£30,000+ 2.50% 2.47% N/A
£10,000 - £29,999 2.25% 2.23% N/A
£0 - £9,999 2.00% 1.98% N/A
 
Trifid said:
I've been meaning to ask this, how do I deposit more than £5400 into an ISA? My banks rates are as below.

Interest rates for customers who open an e-ISA account on or after 15 May 2009
Balance AER
(variable) Gross Rate % p.a. Net Rate % p.a.
£30,000+ 2.50% 2.47% N/A
£10,000 - £29,999 2.25% 2.23% N/A
£0 - £9,999 2.00% 1.98% N/A
Click to expand...

You continue to deposit up to the maximum allowance each year until it reaches £30,000+ (although you'd almost always be better off transferring your current balance to a new ISA account each year as introductory offers run out).
 
Trifid said:
I've been meaning to ask this, how do I deposit more than £5400 into an ISA? My banks rates are as below.

Interest rates for customers who open an e-ISA account on or after 15 May 2009
Balance AER
(variable) Gross Rate % p.a. Net Rate % p.a.
£30,000+ 2.50% 2.47% N/A
£10,000 - £29,999 2.25% 2.23% N/A
£0 - £9,999 2.00% 1.98% N/A
Click to expand...

You cant deposit more than the yearly allowance into an ISA in any one year. If you have deposited money into an ISA in previous year however you can transfer this money to a new ISA by using an ISA transfer form from your new ISA provider.

I would look atmoving if the above are the rates you are currently getting.

/Salsa
 
I mistakenly paid money into two isas in the same year. I immedately withdrew the erroneous amount but when I googled it it said that you should contact the revenue in these circumstances.

I spoke to a normal person and they said it had to be dealt with by a specialist department who they would get to call me. A few days later I got the call and explained the situation, I was told as it was a first offence and had reported it they may at worst send me a tut tut naughty boy letter at the end of the year. I got the impression they deal quite harshly with offenders breaking ISA rules.
 
i have been thinking that an isa can only ever hold 5400 (or whatever the limit is) but that is not true? i can each year put further 5400 into the isa?

damn..
 
ilcp said:
i have been thinking that an isa can only ever hold 5400 (or whatever the limit is) but that is not true? i can each year put further 5400 into the isa?

damn..
Click to expand...

The limits have increased through the years but essentially yes, you can add to existing ISAs but only up to the limit for that year. Let's say for a second that the limit is £5,400 your options would be as follows:
  • Start a new ISA and pay in anything up to the £5,400.
  • Pay £5,400 into an existing ISA but you couldn't then open up another new ISA in the same financial year because you've used all your allowance on that existing ISA.
  • Pay £2,700 into a new ISA and £2,700 into an existing ISA or any other split that appeals to you (why you'd do this I'm not sure as you're better focusing on where the best rate is but it's possible)
I think that covers the most common options anyway. Of course you don't have to utilise your full allowance every year but if you can afford to then it's still probably worth it for when interest rates recover as that means you've stored that money away as your tax free allowance.
 
As of the 1st of this month children have an ISA allowance of £3600 but it will be THEIR money and there can be no withdrawals till they are 18.

Just saying because it could pay for a university degree which could cost a lot more than today or something else of importance.
 
semi-pro waster;2047719 [* said:
Pay £2,700 into a new ISA and £2,700 into an existing ISA or any other split that appeals to you (why you'd do this I'm not sure as you're better focusing on where the best rate is but it's possible)
Click to expand...

this is not allowed you are only allowed to contribute to 1 cash isa per tax year. Please dont split up your contribution as this goes against hmrc rule.
Rule of thumb

Fresh money to 1 place in the year
old exsisting money do what ever you want:)
 
If you are married you could consider getting your other half to take out an isa and bunging the cash in there if they haven't already
 
cornyfeet said:
this is not allowed you are only allowed to contribute to 1 cash isa per tax year. Please dont split up your contribution as this goes against hmrc rule.
Rule of thumb

Fresh money to 1 place in the year
old exsisting money do what ever you want:)
Click to expand...

Apologies, I stand corrected then. I had thought it was only the maximum that you couldn't go over rather than it only being one ISA per year, my mistake.
 
Ha, nice timing with the thread.

So, I went into NatWest yesterday to make a transfer into an ISA Account I'm using this year. Looking online later, I see that the cashier transferred it into the wrong ISA, an ISA I created last fiscal year!

So now I have technically contributed to more than one ISA this year.

Going to go to the bank today to get it sorted, hopefully the HMRC don't get too fussy over it.
 
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