Cash ISA Transfer (Pre maturity)

Peka
Forumite Posts: 6
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I have put £20k ISA for 2022-23 with Santander in their 2 year fixed rate back in April. Interest rates have gone up and I wanted to check if I can transfer (not withdraw) out to another provider with higher rates.
The terms from Santander state - "We’ll charge you a fee equal to 120 days’ interest if you do. This ISA isn’t flexible. That means if you take money out, it will lose its tax-free status. If it’s repaid into an ISA, it’ll count towards your ISA allowance for the current tax year."
I understand the 120 days interest penalty but will I also lose my ISA allowance for this year (2023-24) since it is not a flexible ISA? Can someone confirm if this is the correct reading of their terms, if so, is it permitted by the regulator?
The terms from Santander state - "We’ll charge you a fee equal to 120 days’ interest if you do. This ISA isn’t flexible. That means if you take money out, it will lose its tax-free status. If it’s repaid into an ISA, it’ll count towards your ISA allowance for the current tax year."
I understand the 120 days interest penalty but will I also lose my ISA allowance for this year (2023-24) since it is not a flexible ISA? Can someone confirm if this is the correct reading of their terms, if so, is it permitted by the regulator?
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Peka said:I have put £20k ISA for 2022-23 with Santander in their 2 year fixed rate back in April. Interest rates have gone up and I wanted to check if I can transfer (not withdraw) out to another provider with higher rates.
The terms from Santander state - "We’ll charge you a fee equal to 120 days’ interest if you do. This ISA isn’t flexible. That means if you take money out, it will lose its tax-free status. If it’s repaid into an ISA, it’ll count towards your ISA allowance for the current tax year."
I understand the 120 days interest penalty but will I also lose my ISA allowance for this year (2023-24) since it is not a flexible ISA? Can someone confirm if this is the correct reading of their terms, if so, is it permitted by the regulator?
https://www.moneysavingexpert.com/savings/isa-switch-calc/
'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.1
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