London is the world capital of finance. London has more major banks than anywhere else and is home to one-third of all UHNWI (Ultra High Net Worth Individuals) in Europe. London has so much cash that not even Gold can compare its value.
With such high levels of wealth, many people want to keep their money safe and invest in a secure investment like an ISA (Individual Savings Account).
It can be incredibly annoying if you find out too late that you’ve missed the deadline for opening a cash ISA and therefore limited yourself from earning any interest on your savings.
So we will look at whether you can open two cash ISAs in London in the same tax year.
2 Cash ISAs
Can you open two cash ISAs in London at the same time?
The answer is simple – NO, you can not! London has strict rules surrounding its Individual Savings Accounts, especially when setting them up.
London banks are aware of how thriving London’s economy is, and they want to make sure that Londoners don’t save any more money than necessary.
They do this by restricting the number of cash accounts people can have open at any one time.
If you already have an ISA opened, you won’t be able to set up another one for six months unless there are exceptional circumstances.
1 Cash ISA per tax year
If I can’t open 2 ISAs at once, am I limited to opening only 1 per tax year?
If you have a London cash ISA, you can open another London cash ISA in the same tax year. You could also consider an ISA Offshore (from outside London) or even a Stocks and Shares ISA.
If you already have a London Cash ISAS, then it is recommended that you wait six months before opening another London cash ISA to be on the safe side.
You should, however, be able to open any other London ISA (for example, a London Stocks and Shares ISA) in the same tax year.
Offshore ISA
Can I open an offshore ISA if I’m living in London?
If you want to avoid paying London taxes on your savings, we recommend opening an ISA offshore (outside London).
Cancel cash ISA
Can I cancel my existing London Cash ISAs and open new ones?
It’s not possible to close your London Cash ISAs and reopen them under new conditions; all of your previous agreements will remain valid for the entire tax year they cover.
However, if you maintain just one account in London, they will usually offer accounts for different tax years.
Cash limits
Do London Banks put limits on the amount of cash you can save?
Some London banks limit the number of ISAs an individual can open with them, which means you’ll have to find another bank if you want to open more than one ISA account in London.
However, most London banks do not set a limit on how many accounts or cash you can hold with them at any one time.
The only thing they limit is the amount per account that they will pay interest on.
Move the money
What happens if I want to move my money?
If you decide to transfer your London Cash ISA to another London bank, this is classed as closing your current account and opening a new one with a different term.
It means that you will not be able to open a London cash ISA with any London bank for six months.
Different banks
Can I use my London Cash ISAs in different London Banks?
The London banks are stringent on who they accept money from, so if you have an existing account in London or another London Bank, it is doubtful that they will accept transfers from your old London account.
You’d have to find another bank willing to do this before moving your money across.
Due to all of the rules surrounding opening accounts with different banks in London, most people leave their ISAs where they are and choose how best to invest their money with them.
For more information look here.
