Fixed term ISA transfers

Troughton

I hope someone can help me as I have been receiving conflicting answers both from online research and my bank!

If I have already paid the maximum (£20,000) into my CASH ISA this year, am I allowed to:

1. Transfer the total CASH ISA balance, being the amount I paid in this year and prior years, into a new FIXED RATE CASH ISA?

2. Does the answer to 1 above differ if the ISA's are with different providers?

I read on the fine print of my bank's ISA terms that transferring to a FIXED ISA counts as that year's allocation, therefore if I have already contributed this year I will need to wait until the new tax year to be able to transfer. Some online sources tell me otherwise.

Can anybody tell me with certainty which is correct?

eskbanker

1. You can transfer this year's money and/or money from previous years into a new ISA, as long as you (1) use the new provider's ISA transfer process and (2) keep all current year money together in the same place.

2. No difference.

Feel free to copy/paste or link the Ts & Cs you refer to but it would surprise me if it actually meant what you think it means, but if it says that in those words then it's wrong, as transfers don't affect contribution allowances.

masonic

It is likely you are being required to declare that you haven't/won't subscribe to another cash ISA in the same year as you subscribe to the one you are opening. Which is a declaration you can make.