How does an ISA work?

Hello, 

I'm looking at a Barclays 1 year flexible ISA and currently only have a standard savings account. 

I notice the account pays a fixed rate until maturity and then the account reverts to s instant access ISA. 

Could I change this to a different fixed rate barclays ISA in a year's time? Or would I open a new ISA?


Comments

  • tony3619 said:
    Hello, 

    I'm looking at a Barclays 1 year flexible ISA and currently only have a standard savings account. 

    I notice the account pays a fixed rate until maturity and then the account reverts to s instant access ISA. 

    Could I change this to a different fixed rate barclays ISA in a year's time? Or would I open a new ISA?


    You could do either.

    But to retain the tax advantages you would need to transfer the funds from Barclays ISA to a new one.

    If you withdrew the money and paid it into a new one that would be classed as new money and would mean you couldn't open another new (cash) ISA.

    A transfer isn't new money so you could still open a new one (if needed).
  • Albermarle
    Albermarle Posts: 21,146
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    tony3619 said:
    Hello, 

    I'm looking at a Barclays 1 year flexible ISA and currently only have a standard savings account. 

    I notice the account pays a fixed rate until maturity and then the account reverts to s instant access ISA. 

    Could I change this to a different fixed rate barclays ISA in a year's time? Or would I open a new ISA?


    If you scroll through the forum, you will see lots of questions and answers regarding ISA's. You will soon be an expert!
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