Transfering Isa - 2 in same year?

asus1987

I have 2 Isas .
Isa 1 - 20k - opened oct 22
isa 2 -10k  - opened april 23

If i wished could i open A new isa now at a better rate- transferring in the previous 2 isas - ( im aware of penalty's)  - How does this work if i can do that,  with the interest earned, 
does the amount that get transferred = say 20k + interest earned so far- minus penalty charge = x go into the new isa? 

grumbler

You can make partial transfers (certain amounts) or transfer&close. In the latter case the interest is added to the current balance when the old ISA is closed and transferred.

AFAIK, the only restriction is that you can't contribute to different ISAs, i.e. if you don't close your 2023 ISA you can add money only to it in this tax year.

badger09

@grumbler
Not quite

@asus1987
Re the £20k:
If this was all subscribed (paid in) before 5 April 2023, you can transfer it, using new ISA provider’s process, however you wish. ie all £20k to one provider, £10k each to 2 providers, £5k to 4 providers etc

Re the £10k:
If this was all subscribed after 6 April 2023 you must transfer it all to the new provider. Current year subscriptions must be kept together. 

If the whole amount in these existing ISAs is being transferred, interest will be added & any penalty deducted before the transfer is made. Both ISAs will then be closed. 

You also need to be aware that if you transfer the whole of your current year subscription to a new fixed rate ISA, you may only have a very short time to pay in the rest of your ISA allowance. 

refluxer

asus1987 said:

I have 2 Isas .
Isa 1 - 20k - opened oct 22
isa 2 -10k  - opened april 23

If i wished could i open A new isa now at a better rate- transferring in the previous 2 isas - ( im aware of penalty's)  - How does this work if i can do that,  with the interest earned, 
does the amount that get transferred = say 20k + interest earned so far- minus penalty charge = x go into the new isa? 

If you're talking about penalties, then presumably both of these are fixed rate ISAs ? If so, how long are the fixed rate periods and what are the penalties ?

Yes, interest would be calculated up until the point of transfer and the penalty would then be deducted. If the ISA has been running for less than the length of time of the penalty, then you will get less out than you paid in.

Make sure you do your sums very carefully because I suspect that rates would have to rise a lot further to make it worth transferring, especially from the ISA you opened in April this year. This will obviously depend on the actual rate, length of the fix and the penalty, though. 

Trying sticking your figures into this MSE checker : https://www.moneysavingexpert.com/savings/isa-switch-calc/

Albermarle

There is a sub forum for ISA's, where there are a lot of questions and answers about transfers, so worth a look .

ISAs & tax-free savings — MoneySavingExpert Forum