Locked in to Fixed cash ISAs

Pete2023

I have a fixed cash ISA with Aldermore bank with £82,000 @ very low interest rate, which matures August 2023.

I wish to transfer this out to another provider, immediately (after 5th April), and take the penalty for early access.

As I can only open one cash ISA per year, how can I transfer the balance (or major part of the balance) to a new 2023-24 Cash Isa and invest this year's £20,000 new money? With the following restrictions:

1. Not exceding the £85,000 compensation limit in any account.

2. Cash ISA only, not stocks & shares ISA.

3. If possible, no Aldermore accounts.

It appears impossible to split the £82,000+ into more than one account????

TiVo_Lad

Pete2023 said:

As I can only open one cash ISA per year...

Incorrect. You can only SUBSCRIBE to (i.e pay new money into) one Cash ISA per year. You can open as many accounts as you like in a tax year and move your money around to get the best rate.

Pete2023 said:

It appears impossible to split the £82,000+ into more than one account????

Not at all. You can split your £82K into as many pots as you like by completing ISA transfers when you open a new account (assuming that account allows Transfers In). So you can open 4 new accounts and fund them £10K, £20K, £30K and £22K of your existing money if you want. How you split them is entirely up to you.

Your £20K of new money can go into any one of those 4 new accounts, (so that's your subscribed account for the tax year), or you can open a fifth account and put the new money in there (so that's your subscribed account for the tax year). The only restriction is the £20K of new money can only be deposited into one account, and subsequently moved in the current tax year in its entirety; you can't spread it out.

sparkiemalarkie

You can open as many cash ISA's as you want BUT you are only allowed to pay NEW MONEY into one cash ISA per tax year.
From April 6th onwards....

You could, for example open 
1) Limited access ISA with Coventry Building Society and transfer in £42,000 from your current Aldermore ISA
Plus
2) Open a fixed rate ISA with Santander and transfer in the remaining £40,000 (+ interest) from your current Aldermore ISA
Plus
3) Open a Flexible Cash ISA Tracker with Skipton Building society with your NEW £20,000

or  if you wanted to open 8 different ISA's and transfer £10,000+ into each one from  your current Aldermore ISA
and open another ISA for your £20,000 NEW money

I hope that makes sense...
The Building societies above are NOT recommendations just used for examples only....

sx

Pete2023

Thanks TiVo_Lad and SparkieMalarkie,
I kept seeing the advice that 'you could only open one cash ISA per year'; from your advice it should be 'you can only subscribe new money to one cash ISA per year'. Which, as you say, allows me to achieve my aim.
Thanks Again
Pete2023

bristolleedsfan

TiVo_Lad said:

Pete2023 said:

It appears impossible to split the £82,000+ into more than one account????

Not at all. You can split your £82K into as many pots as you like by completing ISA transfers when you open a new account (assuming that account allows Transfers In). So you can open 4 new accounts and fund them £10K, £20K, £30K and £22K of your existing money if you want. How you split them is entirely up to you.

UBL UK 5 year fixed rate maturing next month which comprised of a transfer in + 2018 tax year new money, despite all fixed rate funds having same account number and same maturity date they have told me I can only transfer out 1 or both of what they referred to it being 2 deals, that they do not do part ISA transfers out.

TiVo_Lad

bristolleedsfan said:

TiVo_Lad said:

Pete2023 said:

It appears impossible to split the £82,000+ into more than one account????

Not at all. You can split your £82K into as many pots as you like by completing ISA transfers when you open a new account (assuming that account allows Transfers In). So you can open 4 new accounts and fund them £10K, £20K, £30K and £22K of your existing money if you want. How you split them is entirely up to you.

UBL UK 5 year fixed rate maturing next month which comprised of a transfer in + 2018 tax year new money, despite all fixed rate funds having same account number and same maturity date they have told me I can only transfer out 1 or both of what they referred to it being 2 deals, that they do not do part ISA transfers out.

Your issue is different. UBL are considering your old Transfer In and 2018 New Money as one pot of ISA Cash. You can only move it from UBL as a single pot i.e. they won't allow you to transfer some money to one ISA and other money somewhere else. That's a UBL restriction, not a limitation of the ISA process.

Albermarle

I kept seeing the advice that 'you could only open one cash ISA per year'; from your advice it should be 'you can only subscribe new money to one cash ISA per year'. 

If you read through this forum, you would see that this misunderstanding is corrected for new posters on an almost daily basis.

badger09

bristolleedsfan said:

TiVo_Lad said:

Pete2023 said:

It appears impossible to split the £82,000+ into more than one account????

Not at all. You can split your £82K into as many pots as you like by completing ISA transfers when you open a new account (assuming that account allows Transfers In). So you can open 4 new accounts and fund them £10K, £20K, £30K and £22K of your existing money if you want. How you split them is entirely up to you.

UBL UK 5 year fixed rate maturing next month which comprised of a transfer in + 2018 tax year new money, despite all fixed rate funds having same account number and same maturity date they have told me I can only transfer out 1 or both of what they referred to it being 2 deals, that they do not do part ISA transfers out.

I’m sure you know, but just in case @Pete2023 doesn’t & encounters the same issue, the simple solution is to have the whole pot xferred to an instant access ISA. Once received, arrange separate xfers as required.