Isa

Help
1

Hi guys, first time here and hopefully I’m doing it right. I have a question on ISA (already contacted the customer care, but still waiting for an answer that makes sense).
So, I have the Oaknorth ISA created in the financial year 2019/2020. My plan is to open a second one after the 6th of April (0.93% Investec) and deposit on both. I thought it was possible but the Monzo representative told I am not allowed (on Monzo website looks I am). Can anyone help me to understand?

2

You can only contribute to one cash ISA per tax year

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3

You can open the Investec after April 6th in addition to already having the Oaknorth open from this financial year, but you can’t put any more money into the Oaknorth after April 5th.

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4

Sorry to bother, but why I can’t deposit the mo ey on the first isa? I’m really confused

5

You can but then you can’t open another in the same financial year. That starts in the 5th April. Government rules. If you contribute to more than one then HMRC will give you grief, possibly a financial penalty

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6

So basically people are allowed to open one isa per financial year but contribute just in one? Am I right?

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7

I think it depends on what type of ISA you have , if its a flexible ISA you can close your original one fully emptied and closed and open a new one in the same tax year

    • If a full withdrawal results in the automatic closure of your account you can open a second cash ISA you can put money into (but you can only do this once per tax year).

Flexible ISA explained -

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8

There are a few exceptions, as Ian points out above, but the way you wanted to do it isn’t allowed

Why did you want to have 2 on the go at once?

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9

I’d needs to keep my savings split. That’s why I was thinking to keep the Flexible Isa provided by Oaknorth, and trasfer my old one to a second one which O was considering to open afyer the 5th of April. But I assume that everything is wrong and I just keep one,right? (my old ISA is also an instant Cash ISA)

10

ISAs are complicated but as far as I know that’s not possible.

I’m guessing you have a very large amount in savings which is why you want the ISA and not some kind of higher interest fixed term savings account

You can keep the OakNorth one open and just not add anything else to it. And then start a new one for this next tax year. But oaknorths rates have dropped so you won’t be making much. Might be worth talking to a financial advisor

11

You’re right. Thank you so muc for your help.

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12

Hopefully somebody else will be along with much better ISA knowledge than me :cold_sweat:

13

Last thing: Can i instead open differents pots woth the monzo? I mean the normal ones with no interests

14

Yes and you can open multiple normal savings pots, just not multiple ISAs

You can have 20 pots maximum. I have 5 pots that generate interest and 6 that don’t