Early closure of Cash ISA

moneysaver2019

I currently have almost a year left of a 2 year fixed rate ISA with Aldermore paying 1.15% (as the rates averaged then).

My question being, if I close it early, I know I'll lose 120 day's interest, but once closed have I lost the tax free benefit? 

I've already put 20k away in an ISA this tax year, so would my only other option be to find the best fixed rate I can and pay the extra tax on my interest (I'll earn over the 1k tax free interest)?

Rodders53

You do not close the account.
You must get the new ISA provider to transfer in from Aldemore.  Open new without paying in any new money and complete a form online or paper to do it.

Just done the same from Coventry to Santander myself.  Quick and painless.

Albermarle

If you withdraw the money to your bank account, you will have lost the ISA status.

Instead you can just transfer it to a new ISA. Either with Aldermore, or another provider.
The restriction on one cash ISA pa/£20K only applies to new money.

There is actually a sub forum specifically for ISA's.
If you read through that there are lots of posts on a similar theme, about transfers etc 

ISAs & tax-free savings — MoneySavingExpert Forum

moneysaver2019

Many thanks for the advice, much appreciated.
I agree, very quick and easy enough to arrange.