ISAs

money13

Can someone clarify something for me?

Me and my husband currently have no ISAs.
We are comings into some money in a few months and would like to fill our cash ISA allowances.
We are likely to take them out this June. Would we be able to move them in March/April time to bag a good fixed rate, with the plan of adding our full 2014/2015 allowance as soon as we can?
Also, does any interest you have made transfer too and keep it's tax free status? Or is that paid out separtely?
Sorry for my lack of knowledge on this. I've looked up explanations but none seem to answer my questions.
Many thanks

money13

Sorry, wrong section, how do I delete this please?

Lokolo

This place is fine. A lot of the regulars browse both here and Savings area.

ISA interest remains in the ISA as tax free interest, and can also earn tax free interest.

As to your first question it depends on the ISA you pick. The majority of bog standard ISAs you are fine to do so. But some fixed term ISAs (1 year, 2 year etc.) only allow 1 deposit or deposits for X number of days.

macman

Unless it's a fixed term, you can move it to a new provider whenever you like, though you can only only subscribe to one cash ISA per tax year.
What you must never do is withdraw the money to move it. You must transfer it direct, which the new provider will arrange. Withdraw it and it loses the tax free status-permanently.

money13

That's brilliant, thank you both.
We are looking at The Coventry Poppy ISA at 2.6% as they will allow deposits in June, the Santander 3% one we were looking at won't unfortunately.
I had read about not withdrawing the money but transferring instead to keep the tax free status - very important!
Excited to be starting our ISA journey as we plan to do them every year from now on.

Thanks again