ISAs

[marshmallowmix]

Just found out that as of April 2024 you can have more than one ISA in a tax year.

I have an ISA I’ve had for years but I’ve not used up my £20k allowance for this tax year. Most years I don’t get close to the allowance.

I have an investment in a fund with Vanguard All Cap I read it is reasonable over the long term, I am thinking to move this into an ISA with Vanguard now I know I can open another ISA this tax year.

Once I open this new ISA can I still contribute to my old one ? As long as I don’t go over the £20k annual allowance?

Thanks 🙂

Yes.

You've always been able to add to 1 cash and 1 S&S per year. But now you can open and contribute to as many as you like of both types as long as you stay within the £20k total

If there's not much in there, do check Vanguard's new fees - they are now much less favourable for small investors. You may be able to get the same fund cheaper elsewhere.

Thanks both.

I can still contribute to my old ISA even if I open a new one? Just want to be totally sure 👍

I read that I couldn’t contribute to my old one if I opened a new one but that is not correct.

Yeah Vanguard fees going up 😟 will see what else is out there …am not sure my fund is available elsewhere …

I read that I couldn’t contribute to my old one if I opened a new one but that is not correct.

That was the case before the 2024 changes to the rules. You can now open a new one and contribute to both that and any old ones in the same year.

I'm new to ISAs as never had any savings most of my life,so forgive the stupid question. I have 20K in a savings ISA which I understand is the max for any financial year. What happens at the end of the financial year? Do I open a new one and start saving into that one?
The interest on the one I have takes the total over 20K. Is that allowed?
Having any savings at all is a novelty so sorry if my questions are embarrassingly ignorant.

The £20k limit is on amounts saved in any tax year, there's no limit on the cumulative value of the ISA

Treat each year as a new page and look for the best rate you can get for the notice period you need. If its better than last year's you can move that one if the new isa allows transfers in

There are lots of comparison websites that will show you the best rates

At the start of the next financial year, you can put another £20,000 into the same ISA or another ISA. The increase in funds caused by interest makes no difference.

Thank you

Am in a similar position to Hedgwiitch, so would like to ask what are probably stupid questions.

I am a fully functioning adult and capable in most areas, but just don't get ISAs - most likely because Ive never had to think about them too much. I did ask Google but nothing quite right came up so here I am

I topped up my ISA a few months back, which with interest is just over £20k.

Can I move my 24/25 ISA to another provider if that pays a better rate of interest, as well as opening another ISA for the new 25/26 tax year? So then will have two ISAs

Should this always be done at the beginning of the new financial year. So that each year you open a new ISA and move around the existing ones to new providers paying better rates.

How do you know what the best 25/26 rates will be, or are they being advertised already?

Thanks

When you open an ISA in 2025/26 tax year as part of that opening you can transfer in the ISA from 2024/25.

Cash ISA providers will often promote in March to attract transfers. Be aware that many are variable rate, so they can drop the interest rate later.

Cash is not an investment so for any medium to long term money, use investments. Stocks & Shares ISA is a great wrapper to use for investments which will not be touched for 5+ years.
Learn about investing in index funds, which spread across global shares so you are not picking individual stocks.

financialinterest.com/index-funds-for-beginners/