I just transferred an old ISA to a bond but also want to open a new acct - is this ok

IzzySIzzyS Posts: 11,045
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The title says it all. Basically i had a mini cash ISA with Nationwide for a few years which I practically forgot about and I recently went and got the passbook updated and checked the rate which it turned out was rubbish (0.25% :eek: ). Anyway they recommended alternatives and I ended up transferring that account into an 18 month ISA bond... now thats all locked away but I still haven't used any of my ISA allowance for this year and I obviously want to make use of it.

I've asked my mum whether or not its ok for me to set up a new ISA account so that I can deposit my years allowance for it there and she says thats fine and that what I did moving my Nationwide ISA into a Bond doesn't count as setting up a new ISA, that its seen as a transfer not a new account, which is fine.

I just know that your not allowed to open more than one account each tax year and that when I tried to apply for a new ISA account online it asked me if I had moved/created a new account this year and I caved and exited the application because I feel like im lying if I say no - I have moved my previous years ISA money from an old account into a new bond with the same institution but that doesn't accept new deposits and I still wanna have somewhere that I can put this years allowance in tax free - any advice? is it legal to apply for a new ISA account with a different bank and say no I haven't opened another account etc.? because I kind of have but blah its complicated!

Let me know if anyone can help, thank you! (I didn't want to phone up and end up with a hefty phone bill, figured I'd see what people here thought first).

Comments

  • BizBiz Posts: 14,756
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    Your mother's quite right Izzy. You can set up a new ISA with this year's allowance anywhere. Look in Money Expert for suggestions, but read the terms and conditions. You might want instant access, some will only allow limited withdrawals, some will allow you to draw out cash with varying degrees of loss of interest; so make sure the one you choose suits you. Often they offer an introductory rate of interest which drops after a specified time. Good hunting. :)
  • IzzySIzzyS Posts: 11,045
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    Biz wrote: »
    Your mother's quite right Izzy. You can set up a new ISA with this year's allowance anywhere. Look in Money Expert for suggestions, but read the terms and conditions. You might want instant access, some will only allow limited withdrawals, some will allow you to draw out your cash with varying degrees of loss of interest; so make sure the one you choose suits you. Often they offer an introductory rate of interest which drops after a specified time. Good hunting. :)

    Thank you :) I didn't want to imply that I didn't believe her, just I find the wording of the rules a little confusing. I'm ok with finding a good account, just wanted to be sure it was legal!.
  • BizBiz Posts: 14,756
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    Yes I agree it can be confusing. Just remember that you're free to move ISAs around between providers, but only allowed to invest new money each year up to the current limit. I suppose it's quite simple once you've understood that. :)

    I'm just relieved that the new government didn't change the exempt from tax rule. :D
  • IzzySIzzyS Posts: 11,045
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    Biz wrote: »
    Yes I agree it can be confusing. Just remember that you're free to move ISAs around between providers, but only allowed to invest new money each year up to the current limit. I suppose it's quite simple once you've understood that. :)

    I'm just relieved that the new government didn't change the exempt from tax rule. :D

    Yes thats what I thought, it was when the website asked if I had opened a new account in the last 12 months. They should maybe re-word it, really the issue is whether you've used up your yearly allowance, I think, right?...

    lol if they changed that then they wouldn't be ISAs...well not in the form we think of them as anyway...

    Thanks again :)
  • BizBiz Posts: 14,756
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    IzzyS wrote: »
    Yes thats what I thought, it was when the website asked if I had opened a new account in the last 12 months. They should maybe re-word it, really the issue is whether you've used up your yearly allowance, I think, right?...

    lol if they changed that then they wouldn't be ISAs...well not in the form we think of them as anyway...

    Thanks again :)
    .

    Yes, I agree with you because as you say you had opened a new account to transfer an existing ISA.

    It's a bit like when you first start to use a computer. I remember when I wanted to put mine on standby and the only thing I could find was "shut down". How was I supposed to know that clicking on it would give me a choice? :confused::D
  • IzzySIzzyS Posts: 11,045
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    Biz wrote: »
    .

    Yes, I agree with you because as you say you had opened a new account to transfer an existing ISA.

    It's a bit like when you first start to use a computer. I remember when I wanted to put mine on standby and the only thing I could find was "shut down". How was I supposed to know that clicking on it would give me a choice? :confused::D

    lol yes, its not very obvious that you had to click on what used to be the start button to get the option to shut it down, its like go to start to stop it - very intuitive(!) :-/
  • BizBiz Posts: 14,756
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    So true. (Big grins not working.)
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