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Fixed rate cash ISA

dustyroad46
Posts: 12 Forumite

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.
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Possible alternative is to put the money in a normal savings account ( not an ISA)
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 .1 -
dustyroad46 said:rules state that you can only have one cash isa of the same type in any one year
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I know that you can only pay new money into one ISA of each type each year. But if I paid £10000 into an easy access ISA then transferred it to a different provider I assume I can pay a further £10000 into the ISA after transfer whether fixed term or easy access or am I mistaken? I know some providers allow you to split your annual allowance between 2 or more of their ISAs (like Paragon do).0
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eskbanker said:dustyroad46 said:rules state that you can only have one cash isa of the same type in any one year0
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gwapenut said:eskbanker said:dustyroad46 said:rules state that you can only have one cash isa of the same type in any one year2
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Malchester said:I know that you can only pay new money into one ISA of each type each year. But if I paid £10000 into an easy access ISA then transferred it to a different provider I assume I can pay a further £10000 into the ISA after transfer whether fixed term or easy access or am I mistaken? I know some providers allow you to split your annual allowance between 2 or more of their ISAs (like Paragon do).0
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