Adding to recently transferred ISA 24 August 2017 at 8:50AM edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings 5 replies 973 views

cometomama

A couple of days ago I applied to have an ISA (which matures as of today) into a higher rate account fixed over 3 years. The ISA is worth £17000 Within the next few days or weeks I will have another £17000 available and would like to pay this in to the same ISA. It's a long story but it would be easier than opening a new ISA and I've heard it's possible that the rate I have got for the recently transferred one will no longer be on offer after the end of the month. So if I applied for a completely new ISA I wouldn't get as good a rate.
I did ring the bank and they said it will be possible to pay that in as it counts as a different tax year from the transferred one. I'm sure I read I wouldn't be able to add to it though. What do you reckon?

Neil_Jones

A lot depends if you've already paid into a cash ISA this tax year. If you have, you can only only subscribe to (ie pay into) one Cash ISA per tax year and also a total limit of £20k across the various types.

If you haven't paid into one this tax year and you just have the one from previous years then I don't see why you shouldn't be able to pay more into it, though that may be provider dependent.

Keep_pedalling

I think you should seriously be looking at S&Ss ISAs unless you plan to use that cash at some time in the short term.

eskbanker

cometomama wrote: »

A couple of days ago I applied to have an ISA (which matures as of today) into a higher rate account fixed over 3 years. The ISA is worth £17000 Within the next few days or weeks I will have another £17000 available and would like to pay this in to the same ISA.

Most fixed term products will only allow contributions in a short window after opening, e.g. 14 days, so check the Ts & Cs of the account concerned to find out what the cutoff date is.

cometomama

Keep_pedalling wrote: »

I think you should seriously be looking at S&Ss ISAs unless you plan to use that cash at some time in the short term.[/QUOTE

I'm risk averse because this is all I have apart from a couple of interest paying current accounts with around £25000 between them. In fact this is between my husband and me. He doesn't have a pension and is retired but won't get state pension till 2020. I'm retired and on work and state pensions. It's got to last us and I can't afford to lose but if you can give any insight into the safety of S&S Isa's I'd be greatful. I'm not prepared to put the money in my husband's name anymore (apart from the joint currently account ) as it's my money from my pension lump sum and my mother's house. I've found it difficult to discuss with banks if things are in his name and he hasn't the patience for it. Thanks in advance.

Keep_pedalling

cometomama wrote: »

Keep_pedalling wrote: »

I think you should seriously be looking at S&Ss ISAs unless you plan to use that cash at some time in the short term.[/QUOTE

I'm risk averse because this is all I have apart from a couple of interest paying current accounts with around £25000 between them. In fact this is between my husband and me. He doesn't have a pension and is retired but won't get state pension till 2020. I'm retired and on work and state pensions. It's got to last us and I can't afford to lose but if you can give any insight into the safety of S&S Isa's I'd be greatful. I'm not prepared to put the money in my husband's name anymore (apart from the joint currently account ) as it's my money from my pension lump sum and my mother's house. I've found it difficult to discuss with banks if things are in his name and he hasn't the patience for it. Thanks in advance.

In your situation I can understand your reluctance to move away from cash, but don't put any more into cash ISAs as they are poor value for money especially since you can now earn up to £1000 pa in interest outside ISA wrappers (where better interest rates can be found) without paying any tax on it.

With inflation pushing 3% the spending power of your cash is being eroded so even cash is not risk free. You now have £17k that can't be touched for years and £25k that is earning some interest and can act as your emergency fund. I would treat at least some of the £17k that is soon to become free as long term savings (10 years or more) by shifting it into a low cost S&S ISA like Vanguard and one of their Lifestratergy funds, which basically is fund containing a large number of holdings from around the world, providing a good deal of diversity which is far less risky than investing in individual shares.

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa.