Isa questions 3 November 2022 at 8:03PM in ISAs & tax-free savings 10 replies 363 views

snowmen

I am currently considering putting money into a fixed rate isa with Santander.

What happens at the end of the fixed rate period - does the money left in the account go into another isa product or does it go into a "normal" non-isa account?

Also, if the money goes into another isa account after the fixed period has ended, is this money still not taken into account for taxation?

Many thanks for the advice!

RobinhoodSavings

They’d contact you in some way to let you know that your ISA is maturing, usually a month before. If they don’t hear from you then they would put it in an ISA saver. Which is at very low rate but you can move it out of there at anytime without any charges. 

Albermarle

RobinhoodSavings said:

They’d contact you in some way to let you know that your ISA is maturing, usually a month before. If they don’t hear from you then they would put it in an ISA saver. Which is at very low rate but you can move it out of there at anytime without any charges. 

Not strictly true as some providers transfer you to the same product as the one maturing. So if you had a one year fix product and it matured without you giving any instructions, it would just transfer to a new one year saver. Other providers as you say will transfer to a low rate easy access account.

or does it go into a "normal" non-isa account? No it will always stay in the ISA wrapper, unless you specifically request otherwise.
Also, if the money goes into another isa account after the fixed period has ended, is this money still not taken into account for taxation?
As long as it stays in the ISA wrapper, then interest is ignored for taxation purposes. It never needs to be declared to HMRC.

xylophone

I am currently considering putting money into a fixed rate isa with Santander.

Can you do better?

https://moneyfacts.co.uk/isa/fixed-rate-isas/

rumpoledog

Also, if the money goes into another isa account after the fixed period has ended, is this money still not taken into account for taxation?
As long as it stays in the ISA wrapper, then interest is ignored for taxation purposes. It never needs to be declared to HMRC.

can i just clarify 2 things here as i have a similar question to the OP.

so interest is added to the isa wrapper and ?compounds tax free? so lets say £20K in and £500 of interest - (or whatever) - that interest is now in the ISA wrapper and continues to grow (unless you take it out) ie the interest doesnt count as using up your ISA allowance - so i can keep this for 10 years and the interest just builds and doesnt use any allowance?

my second question is related. lets say i take out a cash isa for £20K in 22/23 a fixed rate for one year - i get they write to me and ask what to do at the end - lets say i say want to reinvest in another high rate 1 year fixed rate - does that then use my 23/24 allowance? or is it still my 22/23 "wrapper" ie can i (if i have the money) pay another £20K into a 23/24 ISA (perhaps a S&S or another cash) while re-fixed rating my 22/23?

this is the bit im not clear on - hope my question makes sense.???

soulsaver

rumpoledog said:

Also, if the money goes into another isa account after the fixed period has ended, is this money still not taken into account for taxation?
As long as it stays in the ISA wrapper, then interest is ignored for taxation purposes. It never needs to be declared to HMRC.

can i just clarify 2 things here as i have a similar question to the OP.

so interest is added to the isa wrapper and ?compounds tax free? so lets say £20K in and £500 of interest - (or whatever) - that interest is now in the ISA wrapper and continues to grow (unless you take it out) ie the interest doesnt count as using up your ISA allowance - so i can keep this for 10 years in an ISA wrapper and the interest just builds and doesnt use any allowance? YES

my second question is related. lets say i take out a cash isa for £20K in 22/23 a fixed rate for one year - i get they write to me and ask what to do at the end - lets say i say want to reinvest in another high rate 1 year fixed rate - does that then use my 23/24 allowance? or is it still my 22/23 "wrapper" ie can i (if i have the money) pay another £20K into a 23/24 ISA (perhaps a S&S or another cash) while re-fixed rating my 22/23? YES

this is the bit im not clear on - hope my question makes sense.???

See bold... 

rumpoledog

soulsaver said:

See bold... 

Thanks - not sure why i didnt get this from reading about 10 banks websites last night. its the phrase you can take out another isa - make me worry - it would use up another years allowance - thanks!

Albermarle

rumpoledog said:

soulsaver said:

See bold... 

Thanks - not sure why i didnt get this from reading about 10 banks websites last night. its the phrase you can take out another isa - make me worry - it would use up another years allowance - thanks!

If you had spent the time reading this forum instead, then you will have seen the same question has been answered numerous times. As have many other ISA questions.

snowmen

Albermarle said:

rumpoledog said:

soulsaver said:

See bold... 

Thanks - not sure why i didnt get this from reading about 10 banks websites last night. its the phrase you can take out another isa - make me worry - it would use up another years allowance - thanks!

If you had spent the time reading this forum instead, then you will have seen the same question has been answered numerous times. As have many other ISA questions.

Well I for one am grateful for others to take the time to submit helpful replies on the thread I started!

Albermarle

snowmen said:

Albermarle said:

rumpoledog said:

soulsaver said:

See bold... 

Thanks - not sure why i didnt get this from reading about 10 banks websites last night. its the phrase you can take out another isa - make me worry - it would use up another years allowance - thanks!

If you had spent the time reading this forum instead, then you will have seen the same question has been answered numerous times. As have many other ISA questions.

Well I for one am grateful for others to take the time to submit helpful replies on the thread I started!

Well, I was one of those helpful people ! Just worth noting that for many questions you will save yourself time poring through banks T's & C's, by just keeping an eye on the forum from time to time. 

snowmen

Albermarle said:

snowmen said:

Albermarle said:

rumpoledog said:

soulsaver said:

See bold... 

Thanks - not sure why i didnt get this from reading about 10 banks websites last night. its the phrase you can take out another isa - make me worry - it would use up another years allowance - thanks!

If you had spent the time reading this forum instead, then you will have seen the same question has been answered numerous times. As have many other ISA questions.

Well I for one am grateful for others to take the time to submit helpful replies on the thread I started!

Well, I was one of those helpful people ! Just worth noting that for many questions you will save yourself time poring through banks T's & C's, by just keeping an eye on the forum from time to time. 

and I thank you for it (and have on your reply to my original post!)
Much appreciated and keep up the good work!