Noob Question ISA 2 Year Fixed Rate - Deposits in 2nd Year Allowed?

19 Posts


Should be an easy one this
Looking at 2 year fixed Cash ISA's
However ALL the T&C's / Info I read state no further deposits after a certain time frame once opened (usually 14 days)
My question is that I am guessing that the above is only in that first tax year. Once the 2nd tax year starts I can deposit a further £20k into that same 2 year fixed ISA? Or do I need to open another ISA - is that 2 year fixed ISA closed for 2 years once the initial deposit is made?
All the info seems to point to that fact as they all state further deposits are not available and does not state can make a further deposit in the 2nd year - just wanted to check that is correct and it is not poorly worded.
Many thanks
Looking at 2 year fixed Cash ISA's
However ALL the T&C's / Info I read state no further deposits after a certain time frame once opened (usually 14 days)
My question is that I am guessing that the above is only in that first tax year. Once the 2nd tax year starts I can deposit a further £20k into that same 2 year fixed ISA? Or do I need to open another ISA - is that 2 year fixed ISA closed for 2 years once the initial deposit is made?
All the info seems to point to that fact as they all state further deposits are not available and does not state can make a further deposit in the 2nd year - just wanted to check that is correct and it is not poorly worded.
Many thanks
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Thank you.
An alternative is to open a 1 year fixed rate account and, when it matures, transfer it to a new account and add the new annual allowance as well. But you have to make a judgement about where interest rates will go over the next year or so.
So least I know - at the moment, these 2yr fixed ISA's are limited to your initial opening deposit and thats it for the 2 years.
However in 2023/4 I could then open a new ISA with a new provider and deposit my new allowance in that one. So would have 2 x ISA's running then - but that is not allowed is it - can only have 1 x Cash ISA at one time
So if I opened a 2 year fixed ISA today - in May of 2023 I could not open another Cash ISA for 1 year as there would be 2 running at the same time. So would lose my tax free allowance - only option would be to close that 2 year one and transfer it into the 1 year one PLUS my new £20k allowance limit
Is that correct?
In theory, if you wanted two years allowance in one ISA you could open a one year ISA now then in a years time, when it matures, you could open another ISA (with the same provider or a different one) fund it with next years allowance and request a transfer of the ISA you open this year into it. An ISA transfer is not classed as new funds.
Another alternative would be to open a new ISA towards the end of March 2023 and fund it on 1 April (say) using this years allowance, then on 6 April add next years allowance giving you two years allowance in the same ISA.
FWIW I have just moved from 4 separate ISAs to 2 by transfers.
So to be clear the restriction about later funding, is not connected in any way with whether you have the savings in an ISA or not.
ISA rules can be a bit confusing, so it can pay to scroll through this forum, reading various posts, to keep up to speed.
In April this year I transferred my current Cash ISA from one provider to another one and then put in this year's 20K allowance....Last month I then transferred all over to Shawbrook Bank 1 Year Cash ISA to get a much better rate...80K in total held
My question is, from April 6th 2023, can I top up my 80K Shawbrook Bank Cash ISA with 5K from the new 20K 2023 allowance or will I need to just open an Easy Access Cash ISA with the 5K and then transfer the 5K PLUS the 80K held in the Shawbrook Bank Cash ISA into either a new fixed rate or easy access Cash ISA, once the Shawbrook Bank Cash ISA matures in October 2023?
Think I've just answered my own question typing that but any confirmation / advice would be appreciated.
Cheers