ISA question

I opened an easy access ISA with Shawbrook a couple of months ago, intending to switch it to a one year fix as soon as I could max it out at £20,000. That happened Friday, but after I messaged them they pulled their one year fix, lowering the rate. Can I now open an ISA with a different provider and transfer the funds or am I stuck with Shawbrook?

Comments

  • No you are definitely not stuck.  You can open another ISA, many transfers are done electronically now, a few still require paper requests but in either case, the fields allow you to state who your ISA is with and there are portions to state if it's previous years only or a mix etc. It will be apparent which parts you need to fill out.

    Warning ⚠️

    Don't withdraw the funds and close your ISA at Shawbrook yourself, let the new provider do all that or you will lose the tax free status.

    There are loads of threads on here about the process if you search. It's often covered in questions about other points as well. 
    Yeah, cheers but nah, I will stick with yes,  thank you and no. 

    Thank you. 
  • Keep_pedalling
    Keep_pedalling Posts: 16,227
    First Anniversary First Post Name Dropper Photogenic
    Forumite
    The above post is wrong.

    You can transfer to an existing ISA but you can’t open 2 cash ISAs in the same financial year. 

    https://www.moneysupermarket.com/savings/cash-isas-explained/#:~:text=You%20can%20have%20multiple%20ISAs,2024%20tax%20year%20officially%20begins.

  • So are you saying, if I opened an easy access cash ISA this year (I did) and the rate was 4.5%, then a month later they reduced the rate to 0.1%, I'd be stuck at that rate for the remainder of the tax year? That doesn't seem right, or fair.
  • savit4l8er
    savit4l8er Posts: 293
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    @masonic

    Thank you for clarifying that. Although I knew I was correct, I had a brief panic moment. 😱
    Yeah, cheers but nah, I will stick with yes,  thank you and no. 

    Thank you. 
  • Cheers guys. Virgin here I come.
  • Albermarle
    Albermarle Posts: 21,207
    First Anniversary First Post Name Dropper
    Forumite
    You might want to search the forum ( search box at the top) for Virgin.
Meet your Ambassadors

Categories

  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 234K Work, Benefits & Business
  • 606.2K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards