Question about fixed Cash ISA

ruelle

So you can only pay £20,000 each tax year. So if I open a fixed ISA, can I only pay in £20,000 or could I transfer a Cash ISA that has more than £20,000 in it? 

refluxer

Transfers don't count towards the annual £20k allowance so yes, when opening a new cash ISA, you can either pay in up to £20k of this year's allowance or transfer a previous ISA into it (if the ISA provider allows transfers in) or both.

When it comes to fixed rate ISAs, transfers would need to be done at the time of account opening. 

cricidmuslibale

If you open a fixed ISA, yes you can transfer a Cash ISA that has more than £20,000 in it, but if any of that more than £20,000 is new money (i.e. deposited from 6 April 2022 onwards) then you have to transfer the whole of the already existing Cash ISA to the new fixed ISA. You can only pay in £20,000 and also transfer in a Cash ISA if you have not deposited any new money during this tax year (6 April 2022 to 5 April 2023) into the Cash ISA you are transferring into the fixed ISA!

ruelle

Excellent! Thank you both for clearing that up. Very helpful indeed! Now to find one with a good rate...