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Cash ISA

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    I opened a cash ISA with Santander last year (The year 2011/2012). Recently, I opened a cash ISA with Aldermore (year 2012/2013).

    I still have money in my open Santander account and recently received a statement from santander and it mentioned that I could invest the full amount in my santander account but I've already done this in my aldermore account.

    Does this mean I have 2 cash ISA's for this year? I understand you're only allowed one. I presumed that my cash ISA with Santander would "stop" being my main ISA since it was a new year and I would be allowed to open another one for another new year. Was I meant to transfer the money from my santander isa to my new isa (as opposed to just depositing the money from my current account)?

    I'm confused. Can I get caught and lose my money?
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    You're meant to inform them that you have used your allowance in another cash ISA.

    I think most transfer their old ISA funds into the new place (since usually better rate etc) and it ends up in one place.
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    (Original post by Zerforax)
    You're meant to inform them that you have used your allowance in another cash ISA.

    I think most transfer their old ISA funds into the new place (since usually better rate etc) and it ends up in one place.
    So is my Santander account still valid? Or should it not be open or whatever?
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    I think the solution is to close the Santander ISA if it's empty, or transfer the money to the new ISA. I think changing isn't as simple, but the best action is to ring the new Bank handling your ISA, and get them to handle anything that needs to be done. They should have really explained this before hand.
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    (Original post by cowsforsale)
    So is my Santander account still valid? Or should it not be open or whatever?
    The old one is still valid - I would check the rate your old ISA is paying though. I would avoid putting in this years allowance in your Santander ISA if you've already paid into another for this tax year.

    Might get away with it this year but if in future you tried to consolidate them all into one, it would be noticed that you have 2 for one tax year I would have thought.
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    You can have both of them, but you may only subscribe (pay into) one per tax year. So you can keep the Santander one and only pay into Aldermore this year.

    http://www.hmrc.gov.uk/isa/faqs.htm#8

    Q. How many ISAs can I have?
    A. There are limits on the number of ISA accounts you can subscribe to each tax year. You can only put money into one cash ISA and one stocks and shares ISA - one each for cash and stocks and shares.

    But in different years, you could choose to save with different managers. There are no limits on the number of different ISAs you can hold over time.
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    You are allowed one cash ISA per tax year. For the 2011/12 tax year you have the Santander account, for the 2012/13 tax year you have the Aldermore account. Therefore you only have one for each year so it is fine, providing you don't put any more money into the Santander account this year. Once this tax year ends you would then be able to choose to put money into the Santander account, the Aldermore account or open another new account for 2013/14, but only one.

    If the Aldermore account allows you to transfer from previous years and will pay a better rate than Santander is then you can transfer the money from Santander to your Aldermore account and it will still count as last year's money. If you choose to do this though you need to know that you can't manually transfer the money (eg you can't withdraw it from Santander and then deposit it with Aldermore) or it will count under this year's limit. To transfer and still have it count as last year's money you have to ask the bank to do it, I think it's the bank you are transferring into that you ask (Aldermore) but I'm not sure so you'd have to ask them how it works.
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    How can they find out that you've already put money into the other account?
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    (Original post by iPhone)
    How can they find out that you've already put money into the other account?
    they (banks) can't it's up to you to check you're not doing anything illegal.
    They (taxman) can tell what you've been upto as the banks and isa providers have to send in a list of the names, national insurance numbers and cash amounts of the isas they're running.
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    (Original post by StacFace)
    You are allowed one cash ISA per tax year. For the 2011/12 tax year you have the Santander account, for the 2012/13 tax year you have the Aldermore account. Therefore you only have one for each year so it is fine, providing you don't put any more money into the Santander account this year. Once this tax year ends you would then be able to choose to put money into the Santander account, the Aldermore account or open another new account for 2013/14, but only one.

    If the Aldermore account allows you to transfer from previous years and will pay a better rate than Santander is then you can transfer the money from Santander to your Aldermore account and it will still count as last year's money. If you choose to do this though you need to know that you can't manually transfer the money (eg you can't withdraw it from Santander and then deposit it with Aldermore) or it will count under this year's limit. To transfer and still have it count as last year's money you have to ask the bank to do it, I think it's the bank you are transferring into that you ask (Aldermore) but I'm not sure so you'd have to ask them how it works.
    Excellent and thanks to everyone else who replied.

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