UKC

I opened a cash ISA in the tax year 2013-2014. Earlier in this current tax year, when that account was still paying a decent enough rate, I paid some more money in to it. Now the rate has tanked. Would HMRC's ISA rules allow me to open a new ISA in this current tax year and transfer the money from the old ISA to the new one?

I seem to remember that you were only allowed to open one ISA in any tax year. I haven't opened an ISA in the current tax year so far, but does having paid in to my pre-existing ISA in this current tax year make a difference?

I thought I understood ISAs well enough - I've been using them pretty much since they started. But the more I read online, the more confused I get about the finicky details of what you are and aren't allowed to do, especially since the rule changes in July last year.

In reply to Martin W:

I also have this problem - money in the ISA is making bugger all interest and I need to move it.

I thought the rules were you could have as many ISAs as you wanted, but the limit was how much you paid in per tax year (currently £15k)?

In reply to Martin W:
The rules are you can only "put" into one cash ISA each year not open one. So you are buggered I think.
Unless you can claim that it was a mistake and charm HMRC into allowing you a new one.

https://www.gov.uk/individual-savings-accounts/overview

In reply to Martin W:

You can open a new one, but have to close the other one. The total that you can pay in over the tax year is limited to £15000 or something.
But actually no rates are very good as interest rates are low. ISAs with the best rates tend not to accept transfers so worth checking that.

In reply to dissonance:

You can transfer mid-year - you have to move your existing ISA investment so that you are only actively adding to one product.

Some of the best deals won't allow you to transfer in, so check both this factor and any penalties for early closure on your current ISA before calculating the value of moving.

For the avoidance of doubt, this only applies to this year's ISA to which you are actively adding money. Earlier years' cash can just stay put in the schemes to which it was added if you like.

Mark

In reply to Martin W:

You can transfer your entire ISA (but not withdraw the funds and reinvest) to a new provider and you can top up to this year's allowance. It's all pretty clear here: http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

In reply to Martin W:

You could go to your provider and get them to put you on abetter rate, this has always worked for me though I do object so strongly to having to go through this ridiculous dance-appalling service.

Thanks all for your guidance.

I had read the MSE web page and thought I'd understood it, but when I tried to find corrobation elsewhere I just ended up more confused! I am now no longer confused.

There's no way I'm keeping the old ISA running longer than I need to. Fortunately I think I have found another account that pays a comparatively OK rate and accepts transfers in.

Without that, I'd probably have stuck it all in the Premium Bonds until savings rates picked up...