Halifax fixed ISA

alex24

Hi. I have a three year fixed rate ISA that's just finished it's second year. When I log into my online account it says i can invest £5940. Is this correct? I'm under the impression i wasn't able to invest any money for the three years. Cheers

eskbanker

I haven't actually seen the wording but believe that what they're trying to say is that you haven't used any of this year's allowance yet, even though, assuming you're right about no further contributions, you wouldn't be able to (in this fixed product) even if you tried!

Consumerist

alex24 wrote: »

Hi. I have a three year fixed rate ISA that's just finished it's second year. When I log into my online account it says i can invest £5940. Is this correct? I'm under the impression i wasn't able to invest any money for the three years. Cheers

You get a new allowance every year. The fact that you have one or more other ISAs (from previous years) already running is immaterial. The three year fixed ISA will continue to run until it matures but you can open a new ISA or add to an existing variable ISA every year.

I think you may be getting confused with the ISA rule which says you can add cash to only one cash ISA in any tax year. In the year you opened the fixed ISA, you used that year's allowance but in every subsequent tax year you can open a new ISA using each year's allowance. e.g. If you open a 3-yr fixed ISA this year, you will still be able to open another ISA next year and in subsequent years using the new allowance each year.

Note that from 1 July, this year's allowance increases to £15K. If you open a fixed ISA this year, most providers are allowing an additional contribution in July so that you can use the full allowance.

Hope this helps.