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Can I Transfer One ISA and Open Another at the Same Time

by Jim ONeil on May 16, 2011

in ISA's Individual Saving Accounts

The law states that every individual can have one ISA per tax year.

If you are only transferring an old ISA to a new provider and opening up a new one for the current year, you are well within your legal rights. The fact that you are transferring an old ISA has nothing to do with the opening of the new account.

Many people will transfer their ISA upon its maturation to a new provider to take advantage of a better interest rate or bonus. When this happens, they will also top it up with the current year’s contribution. However, topping the old ISA is not mandatory.

If taking advantage of a transfer offer, be sure to read the restrictions as they may require or not allow a top up of the old ISA.

Since you are able to open a new ISA each year, transferring the old ISA is a totally separate occurrence from opening up a new account.

Again, as long as there has been on contribution to the old isa accounts during the tax year, the investor is free to open up a new account and put their annual contribution into it.

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