ISA question.

[E-bmw]

Last week I applied for an ISA through my bank online.

I heard nothing for a few days & so wondered if I had not completed the application completely, so went in again & did it again assuming that the bank would realise my error.

Anyway, minutes after applying again I got an email with ISA details & thought nothing of it.

It turns out that this was the first application, not the second as I assumed, so now I have 2.

I have already maxed out the first one and my question is about the second one.

If I pay money into it, does it just work like a normal savings account (as I am already fully ISA'd for the year) but I will pay tax on the interest?

Obviously, I can get the answer from the bank, but they tend to take many days to answer, so thought I would ask the PH financial experts.

[Chris Peacock]

You can only fund one ISA (with new money) within the tax year. The bank will probably place a block on the second account so it can't accept credits in.

[E-bmw]

Thanks for that, I did wonder if that would be the case, I will let them know my mistake.

[supersport]

The rules change from April 2024, you can now have as many as you like but cannot exceed the £20K limit.

https://community.hmrc.gov.uk/customerforums/pt/98...

[E-bmw]

Thanks again, I did know that, alas I maxed it out as soon as I got the account details.

[eyeslikealemur]

If you don't fund the second ISA this tax year then the bank will most likely just close it as unactivated.

You could email / chat them to explain the position (used current tax year £20k allowance, opened 2nd ISA in error).

Alternatively, if the bank's ISAs are flexible you could fund it via a partial transfer from the 1st ISA.

Could even just be £1.

[rossub]

It'll be ok as long as you don't put anything into the second one.