HTB ISA & New Cash ISA for Transfer

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
1 reply 271 views
apgaapga Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I hope someone can help.
My daughter has a HTB ISA (she adds £200/month, has about £6500 & is getting just over 3% interest). She can't afford to put in more than £200/month - is it worth her considering a LISA?
She also has an old Cash ISA which gets a very poor interest. She would like to open a new Cash ISA to transfer this into (no additional funds would be added) - is this allowed?
Thank you


  • eskbankereskbanker Forumite
    18.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The short answer to your question is yes, it is possible to open a cash ISA for transferring prior year money into, while paying into a HTB ISA.

    However, whether it's the most sensible thing to do is another story, as cash ISA rates are poor across the board.

    One option may be to open a LISA, transfer the pre-2017/18 HTB money and top it up with another £4K from the other ISA before the end of this tax year and maybe another £4K after 6 April, which would get a decent wedge of bonus, keeping the HTB open solely for the interest rather than the bonus. This depends on how much is in the non-HTB ISA though....
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