Matured 1 year fixed ISA gone into easy access ISA whilst waiting for a decent 1 year fixed ISA 12 April 2022 at 7:49PM edited 12 April 2022 at 7:50PM in ISAs & tax-free savings 3 replies 263 views

SickGroove

Good evening,

So, my 1 year fixed cash ISA with Charter (0.51%) recently matured on 06/04/22, and automatically went into their easy access cash ISA, ready for me to transfer when hopefully a 1.5% one year fixed rate ISA appears.

I've 60K in total from previous ISAs so with 20K from this year I'm looking to put 80K into a new one year fixed ISA (with monthly interest if possible)

As my previous fixed rate ISA with Charter had the interest paid monthly into my nominated account, will the same happen now it's changed to a easy access cash ISA? Can't seem to find this information from the Charter website.

Thanks 

masonic

You should refer to the key features document of the ISA they have rolled you into (they have provided you with this information I trust, if not, ask). It doesn't seem to be a product that is on sale to new customers, just those who have maturing accounts and don't give alternative instructions.

Bigwheels1111

Even with tax to pay would not a rate of 2.21% on a 2 year fixed rate be better for you than an isa.
£1786.02 - £1000 tax free. £786.02 - 20% tax = £628.81. So £1628.81 after tax.

Depending on your earnings you can get even more savings allowance.

https://www.gov.uk/apply-tax-free-interest-on-savings

masonic

Bigwheels1111 said:

Even with tax to pay would not a rate of 2.21% on a 2 year fixed rate be better for you than an isa.
£1786.02 - £1000 tax free. £786.02 - 20% tax = £628.81. So £1628.81 after tax.

Depending on your earnings you can get even more savings allowance.

https://www.gov.uk/apply-tax-free-interest-on-savings

I believe the OP has about £55k at Chase earning 1.5% already, so that is £825 interest before considering these funds. I don't know if the OP is a basic rate or higher rate taxpayer, but if the latter then even 2.21% would be 1.32% net. Personally I wouldn't fix for 2 years at 2.21% when there is a 1 year fix just shy of 2% and the potential for the base rate to rise above 2% in the short term.