ISAs

[gbb]

Probably very basic and going to the bank when we get back to confirm I'm right..
I opened an ISA just before the end of tax year 2025/2026, full allowed amount.

I assume now its the new tax year i can do the same again.

Thats probably really basic, I said in another post I dont 'do' big money so have always shied away...but no more.


I assume each and every ISA is still tax free ?

 

[Animo]

Yes

 

[Norry1]

Yes

 

[DCLane]

Bear in mind you can have two ISA's opened each year; a cash one plus a stocks-and-shares one, each with the full amount per year.

Glad you're in a position to throw the full amount in. Want to buy a car/bike as well?

 

[Regular.Cyclist]

Yes you can do that. Why though are you opening another ISA and not adding it into the existing one? Possibly a better interest rate? I ‘ce just maxed out my existing one as it’s got one of the best rates I can find.

 

[FrankCrank]

Bear in mind you can have two ISA's opened each year; a cash one plus a stocks-and-shares one, each with the full amount per year.

Glad you're in a position to throw the full amount in. Want to buy a car/bike as well?

This would be a combination of both types of ISA, the total combined investment being £20,000 per tax year.
I'm new to ISAs, having just kicked off my second one, so please correct me if wrong.

 

[Tom...]

Bear in mind you can have two ISA's opened each year; a cash one plus a stocks-and-shares one, each with the full amount per year.

This is incorrect.

You can now open as many Cash ISAs and Stocks and Shares ISAs as you like every year, but you can only contribute the full amount (£20k) across all of them, not in each.

 

[vickster]

Yes and you can transfer in your old one(s) into ones paying a better rate than whatever product your provider has moved you to as well as the 2026/2027 £20k allowance (you can move to shares/cash/mix). I'm waiting for maturity and then I'll do some research (well look at mse) and moved some non-ISA savings into ISAs to say yah boo to the taxman (a bit)

 

[SpokeyDokey]

And don't forget that the  Cash ISA allowance drops to £12000 for under 65's from April 2027.

Overall allowance remains at £20000 so you can only use the full amount if you invest £8000 in a riskier Stocks & Shares ISA.

The lady from accounts devised the scheme and would prefer you to invest in Great British companies... totally at your own risk, of course.

 

[Pblakeney]

Probably very basic and going to the bank when we get back to confirm I'm right..
I opened an ISA just before the end of tax year 2025/2026, full allowed amount.

I assume now its the new tax year i can do the same again.

Thats probably really basic, I said in another post I dont 'do' big money so have always shied away...but no more.


I assume each and every ISA is still tax free ?

Yes, but do shop around. Online providers generally provide a much better rate of return than high street banks.
Plus you can transfer any poorly performing ones into the higher one without affecting this years contributions. Transfer ≠ contribution.

 

[Pat "5mph"]

Bear in mind you can have two ISA's opened each year; a cash one plus a stocks-and-shares one,

This is incorrect.

You can now open as many Cash ISAs and Stocks and Shares ISAs as you like every year, but you can only contribute the full amount (£20k) across all of them, not in each.

Beaten to it!
Indeed, I have 2 cash ISAs opened the same year.

 

[chris-suffolk]

Be aware that whilst you can transfer from one provider to another to get a better rate, many of them will not only accept transfers via the BACS electronic system. If your current provider isn't signed up, then you have to find a proxy bank to transfer via, in order to get it where you want it to go. This will then involve paper transfers etc, and can be a bit of a pain - ask me how I know?
So, if you think you might transfer at some point in the future may be worth doing a bit of digging ahead of time.

 

[Beebo]

Transfer between ISAs has to be done properly to ensure the money remains within the ISA tax free envelope.

 

[T4tomo]

Yes you can do that. Why though are you opening another ISA and not adding it into the existing one? Possibly a better interest rate? I ‘ce just maxed out my existing one as it’s got one of the best rates I can find.

I think "do the same again" referred to investing £20k not opening a a new isa

 

[vickster]

Transfer between ISAs has to be done properly to ensure the money remains within the ISA tax free envelope.

Indeed.
I have just set up a transfer request as UBL stuck my matured ISA into another fixed and I want to think about what to do. Apparently I'll lose accrued interest (there's a cooling off period) but it'll only be a couple of weeks.
Could have left it but want the choice to choose (odd as normally they just move into cash ISA but UBL don't have any!)
Have shifted into an ancient NatWest cash ISA with £9 in it for holding within the ISA envelope