Cash Isa Question

[j0nb0y]

I have a cash ISA at the moment which is paying 2.8% variable in interest. I have put the full allowance into it already. There is also money from a previous Isa in there. When it comes to April and the new allowance starts again, If I pay into this current Isa, does that mean I cannot open another account in that tax year? and if so would I be safer opening a new account with a fixed rate for a year at 2.5% as savings interest just seems to be getting lower and lower.

Hope all of the above makes sense. Many thanks in advance.

[dzug2]

If you put new money in your existing ISA after April 5th it's effectively a new ISA - so no you couldn't open another one as well

[New Judge]

Yes dzug is quite right. You cannot "add" to an existing ISA once the tax year has ended and any new money you invest will constitute a new ISA.

Fixing your ISA rate can be advantageous if you do not need access to the cash for the period you tie it up. At least you know what you will get. But be careful - some of the rates offered are truly pathetic even for a fixed term investment.

Also bear in mind that (provided it is not a fixed term ISA) you can move some or all of your existing ISA investment to another provider (provided they accept transfers). So it may be worthwhile considering this next April when you come to think about your investment for 2013/14.

[Peter Pedant]

This is a common complaint from us savers - and all goes to show the bankers are no different to a few years ago.

The cash isa begins at 2.8% and then after a year it goes down to 0.1%.


disgraceful but you are stuck with it

[johnk]

Take out another ISA that you can transfer into. I do this every year, loyalty doesn't pay.