Fixed rate cash ISA

11 Posts

Thought I knew all about Isa’s but shows you can’t take anything for granted. I opened a fixed rate isa but at the time could not deposit the full rate of £20000. The account had a deposit window of 3 weeks before closing to further deposits which I was well aware of. Three months later and now with spare cash in same tax year I’m unable to put this in the original as it’s closed to further deposits. I cannot open another cash isa with the same company or any other as rules state that you can only have one cash isa of the same type in any one year. This means I’m effectively unable to make use of the £20000 maximum allowed. The only option would be to transfer the original isa to another provider and then add the spare cash but this will mean 90 days interest penalty. I’m only interested in cash isa’s and ruled out other types ie: S&S and Lisa etc.
0
Latest MSE News and Guides
Replies
Cash ISA's are largely redundant for most ( not all) savers as a basic rate taxpayer can earn up to £1000 in interest tax free anyway . In any case as normal saving accounts usually pay more interest , then can still be a better deal even if you do have to pay tax .