Query re transfer of ISA to another account

swebb

If I move my ISA savings from one bank to another, will I lose the interest with my current bank or will they still pay it at the end of the financial year?

Lokolo

When you transfer they will pro rata the interest.

So if you've had the ISA for 6 months and transfer, then you transfer the amount + 6 months worth of interest.

swebb

...and if I transfer say, £1k, does that mean I can only pay in a further £2600 i.e. the transfer affects what I can pay in?

Lokolo

swebb wrote: »

...and if I transfer say, £1k, does that mean I can only pay in a further £2600 i.e. the transfer affects what I can pay in?

You can top up by the rest of your allowance.

Interest does not count towards allowance.

So if you transfer £1k + £100 interest. You will have a new account with £1100, but you can top it up by £2600 (as your £3600 limit, you have only put in £1000 yourself)