I want to open a new ISA with Alliance & Leicester for me and my husband from April 2010 with our full allowance of £5,100 each. It doesn't accept transfers in so can I still find another provider in the same year to transfer in our previous ISAs from Nationwide to get a better rate when their fixed rate ends? Or is that classed as opening a second ISA in the same year?

It is certainly possible to transfer your previous year's cash ISA allowances to an alternative bank or building society. This will not be seen as opening a second ISA in the same tax year as you are simply transferring previous year's allowances. However, as you have found, not all providers allow transfers in so make sure you check the small print before applying. Your existing cash ISA provider, Nationwide, are permitted 30 days to process the transfer to the new provider as soon as they receive the paperwork.

Back to Questions »