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ISA Contributions When Transferring From Fixed Rate Account

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Hi

Bit of advice for something I think I already know then answer to, so apologies for the question. I opened a fixed rate ISA in April and contributed a small amount owing to my own misunderstanding as to the time frame I was able to contribute. I am now left with an underused ISA. Could I transfer it out to another ISA and complete the year's allowance? I suspect not.

Comments

  • Albermarle
    Albermarle Posts: 27,658 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Yes you could but the Fixed rate isa you would be leaving will have a penalty clause for early closure.
    However if you have not got much in there it might not be very much.
  • Doctor_Who
    Doctor_Who Posts: 917 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    JamesY201 said:
    Hi

    Bit of advice for something I think I already know then answer to, so apologies for the question. I opened a fixed rate ISA in April and contributed a small amount owing to my own misunderstanding as to the time frame I was able to contribute. I am now left with an underused ISA. Could I transfer it out to another ISA and complete the year's allowance? I suspect not.
    Yes, being this year's subscription it would need to be a full transfer to a new ISA and there will be a penalty. You can use the MSE calculator to determine the penalty, but as Albermarle says, if the balance is low the penalty shouldn't be very much.

    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.
  • JamesY201
    JamesY201 Posts: 28 Forumite
    Third Anniversary 10 Posts
    JamesY201 said:
    Hi

    Bit of advice for something I think I already know then answer to, so apologies for the question. I opened a fixed rate ISA in April and contributed a small amount owing to my own misunderstanding as to the time frame I was able to contribute. I am now left with an underused ISA. Could I transfer it out to another ISA and complete the year's allowance? I suspect not.
    Yes, being this year's subscription it would need to be a full transfer to a new ISA and there will be a penalty. You can use the MSE calculator to determine the penalty, but as Albermarle says, if the balance is low the penalty shouldn't be very much.

    https://www.moneysavingexpert.com/savings/isa-switch-calc/
    So just to be clear. If I transferred £10k from this year's contribution, I could still make a further contribution of 10K this year?
  • badger09
    badger09 Posts: 11,568 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    JamesY201 said:
    JamesY201 said:
    Hi

    Bit of advice for something I think I already know then answer to, so apologies for the question. I opened a fixed rate ISA in April and contributed a small amount owing to my own misunderstanding as to the time frame I was able to contribute. I am now left with an underused ISA. Could I transfer it out to another ISA and complete the year's allowance? I suspect not.
    Yes, being this year's subscription it would need to be a full transfer to a new ISA and there will be a penalty. You can use the MSE calculator to determine the penalty, but as Albermarle says, if the balance is low the penalty shouldn't be very much.

    https://www.moneysavingexpert.com/savings/isa-switch-calc/
    So just to be clear. If I transferred £10k from this year's contribution, I could still make a further contribution of 10K this year?
    If £10k is the total amount of new money you have paid into your ISA since 6/4/23, then yes. Once the transfer is complete, you can make a further contribution of £10k. 
    If the new ISA is also a fixed rate, do check how long you have to fund it. Most allow a relatively short time, as you have discovered. 

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