Merging 2 ISA’s - a problem 28 October 2022 at 5:08PM in ISAs & tax-free savings 6 replies 191 views

gele

Hi I’m looking for some advice 
I have a fixed ISA with the  Coventry maturing at the end of Nov ( good timing I thought) I also have a Teachers building society ISA and I intended to merge them. However the Teachers one is a 90 day notice which I had forgotten as I’d had opened it quite a few yrs ago and so it can’t be released til Jan 23. That will be too late to add funds to any new Coventry fix one I that I intended opening when the other matures 

Any advice on the best thing to do to move forward consolidating these isas without losing too much interest.
Thanks

masonic

What is the penalty for waiving the notice period on the Teachers ISA? How does this compare with the opportunity cost of moving the Coventry ISA into easy access for 2 months? The third option is to keep them separate and move each into a fix when you can.

gele

Thanks for the reply.
i didn’t ask about a penalty. Maybe that’s a call I need to make.
i have started the 90 day process anyway.
Re moving Coventry for 2 months I was thinking about this. If I move it, can I then transfer it again in the same tax year to a (hopefully) better rate fix? Usually there’s a lime limit to add funds so I’d have to time it right so that I open a new one late jan and still have a window to transfer Teachers money in. 
Not sure I like the idea of losing 2 months interest at the higher fixed rate while waiting!😕
But it’s that, or fix and easy access for lesser amount that is in Teachers.
Theres £40k in Coventry and only £12k in Teachers if that makes much difference.

masonic

With £40k in Coventry, it doesn't seem sensible to make accommodations for the smaller balance in Teachers. You will be able to transfer the Teachers ISA at a time of your choosing, as this is required in the ISA rules, so it is just a case of what it might cost you (e.g. 90 days interest is a likely penalty for a 90 day notice account). If the rate is low, then this might not amount to very much, and you will benefit from a higher rate of interest sooner to compensate for the penalty.

gele

Yes. It was because there was significantly more in Coventry I wasn’t sure what to do.
 And I can consider both the 1 and 2 yr fixes if I forget about merging. 
I should have been more diligent regarding the notice period as that additional £12k would have helped that balance nicely.  Unfortunately I won’t have much spare cash to add to it.
As for the Teachers, I’ll run with the notice period I think and hope there’s a tempting easy access available at the end of Jan.
Thanks for helping me think things through.

gele

I read on another thread that Coventry have pulled their fixed Isas so unless they’re going to offer new ones in the coming week or so they won’t have anything I want to transfer into when mine matures at the end of this month! If that’s the case I’ll have to look elsewhere. I’ve had an isa with Coventry for a number of years now as rates have always been pretty competitive on maturity so we’ll see if tomorrow’s decision brings about some nice new rates for us loyal customers. 

Albermarle

 If I move it, can I then transfer it again in the same tax year to a (hopefully) better rate fix? 

Assuming you mean move it from an easy access ISA, then yes you can.