Cashing My Fixed rate ISA in early

dj_air_eye

If I cash in one of my old fixed rate ISAs early because it's worth paying the penalty will that be treated as ISA savings from previous years so not subject to the £20,000 annual limit as I've already used up this year's allowance.

eskbanker

What do you actually plan to do with it?  If you transfer it to a new provider (using that receiving provider's ISA transfer process) then it stays within the ISA wrapper and so doesn't affect (and isn't affected by) the current year contribution limit.  However, if 'cashing in' signifies withdrawing the money to outside the ISA wrapper then it would lose its ISA status and you wouldn't be able to put it into another ISA until next tax year if you've already used this year's allowance....