Dealing with Fixed-Rate ISAs

seekmeup41

Hi all,


Apologies if this is answered elsewhere. I opened a 1-year Fixed rate ISA in Feb 2019 with my full 2018-19 allowance. I can't now add money to this with my 2019-2020 allowance. Whilst I could open up a Cash ISA (or Stocks and Shares ISA) now with my 19-20 allowance, I then don't know what to do with my Fixed Rate ISA when it matures in Feb 2020 as it seems most cash ISAs only allow ISA transfers in the first 30days of opening my account. I really don't want to wait until Feb 2020 to put my 19-20 allowance away. Any ideas on how to deal with this?


Thanks
Steve

jimjames

Transfer it to a new ISA when it matures? Transfer it to a S&S ISA so you don't need to worry about fixed rate expiry?

Plenty of options available depending on your requirements

Reed_Richards

seekmeup41 wrote: »

, I don't know what to do with my Fixed Rate ISA when it matures in Feb 2020

Assuming you want to keep this ISA as a cash ISA then a few weeks before it is due to mature you start to research the best cash ISAs that allow transfers in. You approach the provider of your chosen ISA and ask them to transfer in the money from your old ISA on the day that it matures. Simples.

If you think that where you invest your 18/19 ISA allowance has any bearing then you are mistaken. Your 18/19 money can only be invested in one cash ISA but there are no restrictions whatsoever on where you transfer the money in ISAs from previous years to.

seekmeup41

Hi Reed,


Thanks. The issue isn't so much what to do with the fixed rate ISA when it matures, but what to do with my 19/20 allowance now. I could put this into a new cash ISA now but i won't then be able to transfer my Fixed rate ISA into this cash ISA when the fixed rate matures in Feb 2020. Thus come April 2020 when my 20/21 allowance opens, I will have 2 separate ISAs to consolidate, and I don't think it is possible to transfer 2 ISAs into a new ISA but perhaps I am wrong. I guess I could just put my 19/20 allowance into my S+S ISA now, and then let my fixed rate expire in Feb. 2020 but wait until April 2020 to transfer it to a new account.


Thanks for all your advice!
Steve

Reed_Richards

Why consolidate? Okay, its probably a bit more convenient but you should not let the tail of consolidation wag the dog of sound investment decisions.

You are wrong. If your ISA provider accepts transfers in you can transfer in as many ISAs as you can be bothered to complete the paperwork for. Two is certainly not a problem (unless you have a very low tolerance for paperwork).

seekmeup41

Hi Reed,


Oh this is great. For once I am happy to be wrong.
Cheers
Steve