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Cash ISA Bond Maturing - question about options
David_Drummond
Posts: 42 Forumite
Dear Forum members,
My CASH ISA FIXED RATE BOND with Virgin Money matures on July 31 and I have been offered a transfer to their 1 Yr Cash Isa Fixed Rate Bond Issue 72 whch offers a fixed rate of 4.75%. However I note that Leeds BS offers a rate of 5.50% for their 1 yr fixed ISA & I would like to switch the maturing funds to them. I am worried because I opened a brand new ISA in April with Coventry BS to the maximum of £20,000, so my question is this: while I know that switchng within Virgin accts will not contravene the ISA rules, I am wondering if transferring the matured funds out from Virgin to LEEDS BS would be considered a new ISA and therefore not allowed, because I already maxed my allowance for the current tax year? Thank you if anyone can relieve my confusion....
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Comments
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Transferring an ISA is not the same as opening a new ISA. You can open a new ISA (and add money) and transfer an old ISA in the same tax year. The transfer could be to the new ISA (if they accept transfers-in) or to a completely different provider.David_Drummond said:Dear Forum members,My CASH ISA FIXED RATE BOND with Virgin Money matures on July 31 and I have been offered a transfer to their 1 Yr Cash Isa Fixed Rate Bond Issue 72 whch offers a fixed rate of 4.75%. However I note that Leeds BS offers a rate of 5.50% for their 1 yr fixed ISA & I would like to switch the maturing funds to them. I am worried because I opened a brand new ISA in April with Coventry BS to the maximum of £20,000, so my question is this: while I know that switchng within Virgin accts will not contravene the ISA rules, I am wondering if transferring the matured funds out from Virgin to LEEDS BS would be considered a new ISA and therefore not allowed, because I already maxed my allowance for the current tax year? Thank you if anyone can relieve my confusion....'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.1 -
Indeed, you can transfer multiple old ISAs in the same tax year.1
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Are you aware that Virgin Money offer a 1 year fixed ISA at 5.45% or a 2 yr fixed at 5.50%1
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Thanks Stargunner. Since I switched to the LEEDS ISA they have upped the rate to 6.00% for the 1 yr I signed up for so I am content.
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