easy access isa to fixed cash isa

P933alilli

Hi, is it ok to open an easy access cash isa to put in the remaining isa allowance i havent used for this tax year, then open a fixed cash isa for next year and then transfer this years cash from the easy access isa as well as £20k into the fixed cash isa?

eskbanker

When you say "the remaining isa allowance i havent used for this tax year", have you already paid into another cash ISA this tax year?

If not, then you can do what you propose, as long as the fixed product accepts transfers in and you can fit this in during its initial funding window....

P933alilli

Thanks for the reply! Ive only paid into a S&S isa this year!

xylophone

Let's say you have contributed £10000 to an S&S ISA in the current tax year.

You can contribute up to £10,000 to a cash ISA  before 6th April.

You have a new ISA allowance of £20,000 from 6 April.

You can open a Fixed Rate ISA with the £20,000 if you wish

If the new provider permits transfers in you will be able to transfer your previous year's ISA into the new ISA.

Check with your new provider on the mechanics of this, particularly as you are considering a fixed rate.

masonic

There's nothing to stop you fixing the current year cash ISA, then opening a new fix during the next tax year without transferring if there are any issues with transferring. This might also be a means of hedging against further cuts to fixed rates in the coming weeks or months.