Cash ISA

lucy.lockett_2

I have a fixed rate cash isa. I deposited money into the isa within the first 30 days. I've recently inherited money from a relative so I was hoping I could add the money into the isa but I can't. I want to have all the money (existing money in the isa and inherited money) in one isa. The aim is to get a better return as there would be more money in the isa. Please can anyone advise me on the options I have. I've been told I can open another cash isa so would it be a good idea to do an isa transfer (transfer cash in current isa to new isa and then add the additional money). Any advise would be really helpful. I am below the £20,000 allowance. Thanks 

xylophone

I have a fixed rate cash isa.

Is it also fixed term? You made the contribution on or after 6/4/23 (that is within the current tax year)?

Is there an interest penalty for transferring out within the fixed term?

lucy.lockett_2

I deposited money into the account on 3rd April 2023. Its a one year fixed rate isa.

I can't find infomation on penalties for transferring so I would need to contact the provider. They do have penalties for withdrawing money (60 days' loss of interest on the amount withdrawn) but my understanding is that a transfer is different.

Malchester

If the money was credited to the account on 3rd April then that is the previous tax year so as long as you haven't contributed to an ISA since 6th April you can contribute £20,000 to an ISA. To the best of my knowledge a transfer has the same rules as a withdrawal. There are a small number of banks that allow additions to a fixed rate ISA- Shawbrook and Lloyds Bank are 2 I know o

lucy.lockett_2

So if I just left my existing one year fixed rate cash isa as it is and opened another one year fixed rate cash isa now, when my existing isa matures on 24th April 2024 will I be able to transfer the money into the other one?

retiredbanker1

lucy.lockett_2 said:

So if I just left my existing one year fixed rate cash isa as it is and opened another one year fixed rate cash isa now, when my existing isa matures on 24th April 2024 will I be able to transfer the money into the other one?

Yes you will.

Albermarle

lucy.lockett_2 said:

So if I just left my existing one year fixed rate cash isa as it is and opened another one year fixed rate cash isa now, when my existing isa matures on 24th April 2024 will I be able to transfer the money into the other one?

There is a specific forum for ISA's. If you read through it you will see lots of questions and answers about ISA rules.
ISAs & tax-free savings — MoneySavingExpert Forum

friolento

retiredbanker1 said:

lucy.lockett_2 said:

So if I just left my existing one year fixed rate cash isa as it is and opened another one year fixed rate cash isa now, when my existing isa matures on 24th April 2024 will I be able to transfer the money into the other one?

Yes you will.

Only if the new fixed ISA would allow transfers-in next April. Shawbrook might do one of these. Most others are unlikely to.

If OP wants to combine in April next year, they should consider an easy access ISA for the 2023/24 allowance. They would need to confirm that transfers-in are supported by that easy access ISA.

As the OP has less than £20k, they should also check whether they benefit from ISAs at all.