This is slightly different to my earlier ISA question, and relates to the current market conditions where best-buy ISAs often have 1 year bonuses, and may not accept transfers in.
Consider the following situation:
- June of tax year one - open a cash ISA with a 1 year bonus, pay into it
- April of tax year two - open a new cash ISA with a great rate that doesn't accept transfers, start paying into that
- June of tax year two - bonus on last year's ISA ends, rate drops dramatically
In that situation, it isn't possible to transfer the previous year's ISA into the one you're paying into that year. However, it may be possible to find an ISA on the market then which does accept transfers in, and pays an OK rate.
Are you allowed to open a second ISA in a tax year, as long as you only transfer in money from previous years, and don't make any new contributions? Or would the restrictions on only opening one ISA per tax year prevent you moving past contributions to a new account that's a different account to the one you're making new contributions to?