Rollover of matured Fixed rate Isa with the same provider

Downbythejetty

my fixed isa just matured in this current tax year 2023/24, the provider advised the usual 'we will put the funds in flexible isa at a low interest rate'. I looked at the products available and the same provider had a reasonable interest rate for a 2 yr isa, so I rang them and specifically asked if moving the funds on maturity into the 2 year fixed isa would prevent me from using this year's allowance to open another isa with them or another provider, they told me it would not, as long as I didn't put any 'new' funds into the new fixed isa.
 I have now had written confirmation of the'rollover' into the 2 yr fixed isa, but the letter also states 
I have subscribed to the 2 yr fixed isa, and i agree not to subscribed to another cash isa this tax year.
So this seems contrary to the advice I was given when I called, and the provider now says I have 60 days to fund the isa with this years allowance, or I will lose the opportunity to use this years allowance, as I cannot open another Isa with another provider

For various reasons, including that rates could still go up, I don't want to use this years allowance now. Also from the advice I was given on the phone, I planned to do the same type of rollover with other fixed isa's maturing this year at different times , in each case, keeping the funds with the same provider if they have competitive rates. 

Anybody have any experience of similar? And the 'correct' information please? Thanks

eskbanker

The declaration is standard wording, requiring you to confirm that you won't subscribe to another cash ISA in the same tax year as you subscribe to this cash ISA (or similar text), but as you won't actually be subscribing (i.e. paying new money in) to the 2-year fixed one (even if that's what they assert), that doesn't compromise your ability to fund a different one with the provider of your choice.

Edit: this assumes that they use a recognised transfer process to move the funds from old to new ISA - are they actually claiming that you've used some or all of your 2023/24 allowance?

badger09

Either you have misunderstood or, more likely, the person you called doesn’t understand ISA rules. 

If your matured ISA funds were transferred into another FRISA using the provider’s transfer process (rather than you withdrawing funds & moving them yourself) then you can open & subscribe (pay new money) into the same ISA, or into another ISA with them, or with anyone else. 

They can apply a 60 day funding timescale for new money into that particular ISA. 

You can only pay new money into 1 ISA (of each type) at a time, so you can’t for example pay £10k of this year’s allowance into the new FRISA then pay another £10k into a different ISA later. 

Downbythejetty

Thanks, eskbanker and badger09, transfer was all officially via the provider.