Fixed Cash Isa payments

Forrest_1

Hi everyone.
Wondered if anyone can help?
I transferred my ISA savings into a 1 year fixed ISA (1.62%) account in May this year and have only put in £1500. Now it won't let me pay in any more money this year.
Is it worth transferring to another ISA so that I can add more money.
Trouble is it has a 120 days interest withdrawal penalty.

jimjames

For £1500 it seems crazy to use an ISA at 1.62% when you can get 5% taxed outside an ISA. There is no point chasing a tax free account when it pays a low rate.


So I wouldn't bother to put the new money in, just use other accounts and if needed give the 120 days notice to get the money out of the ISA.

Forrest_1

Okay, thanks for that.


I'll see what other savings accounts are out there.

xylophone

Leave the ISA where it is until maturity and have a look at current account offerings?

How much are you intending to save each month?

Forrest_1

Hi xylophone


Yeah I am leaving the ISA where it is until next May. I have built it up over a few years.
I have only put £1,500 in this year because I didn't realise there was a deadline for the full £15,240.
I normally try to put in £1000 a month.