Fixed Rate ISA top ups

Shenron

I am really hoping that someone can help with my query as this has been bothering me for years! It was explained very poorly by my saving provider, so I thought I would have more luck here.

I have a 5 Year Fixed Rate ISA.
I have paid into the ISA only once when I first opened it, but have not touch it since.
I am now into Year 3 of my ISA and I have not added anything to it other than the initial deposit in Year 1.

So my question is - am I allowed to add any more money to it?
I keep reading in places that you have a personal ISA allowance of up to £20,000 for the year, so as I have not put any money in this year, does that mean I can do this?

dunstonh

So my question is - am I allowed to add any more money to it?

not normally.

Each fixed term deposit is usually issued as a tranche. You can pay in during the initial tranche window but after that date, it is withdrawn for new money and a new version issued.

I keep reading in places that you have a personal ISA allowance of up to £20,000 for the year, so as I have not put any money in this year, does that mean I can do this?

You can put it into their latest tranche if you want.

Shenron

Sorry, I'm a little confused (it happens easily), so essentially would I not be able to put any extra money in at any time during the 5 year period?

eskbanker

You can't pay any money into that particular 5-year product after the initial window has closed (the vast majority operate like that).

However, you can pay up to £20K into any other ISA this tax year (and any/every other tax year) - this is the annual allowance permitted by the ISA scheme rules, as opposed to the terms of a specific product....

Shenron

Gotcha! So I can open another ISA and put money into that? As long as I don't open more than one ISA in the same year, that correct?

eskbanker

Shenron wrote: »

Gotcha! So I can open another ISA and put money into that? As long as I don't open more than one ISA in the same year, that correct?

Almost - the rule is that you can only pay new money into (no more than) one ISA of each type in any given tax year, where the four types are cash, S&S, innovative finance and Lifetime.

Shenron

Perfect, thanks guys. You have been a huge help!

badger09

Are you sure a cash ISA is the best place for your savings?

With a little effort, you can get up to 5% on some of your savings. If you are a standard rate taxpayer, you can earn up to £1000 interest tax free each year.

Have you read this

https://www.moneysavingexpert.com/savings/which-saving-account/

Shenron

Thanks badger09.

I actually already have a few savings accounts with decent interest (with help from the exact link you provided), but I discovered those a bit late. Hence trying to see if my ISA was still worth it.