ISA Clarification ( Santander)

buyhighselllow

I have a FR ISA with Santander I took out 21/22 and added some funds to April 23. 4.15%

1 I don't seem to be add further funds to it when logged in ( I have 5k left in my allowance for this tax year)

2 There is an upgrade tab, which takes me to a list of products including a fixed rate ISA @ 5.2% 

Is it permissible to Swap either into this ISA with Santander mid financial year OR even consider transferring to another provider altogether offering an even better rate eg Charter offering 5.7% 

TIA 

refluxer

As it was for 4.15%, I'm guessing you took out a Santander 1 year ISA some time around March/April this year (so the 2022-23 tax year, not 2021-22) ?

With a few exceptions (eg. Barclays and Shawbrook), fixed rate ISAs normally only have a limited funding window so you can't add new subscriptions beyond that window (which would explain point number 1) and you'll have lost any remaining, unused ISA allowance for this tax year.

One way round this would be to transfer to another provider which would then give you a new funding window in which to add your remaining allowance, but transferring an ISA midway through a fixed rate period will incur a penalty.

To work out whether it's worth paying the penalty and switching to a better rate, put your figure into MSE's 'ditch and switch' calculator...

https://www.moneysavingexpert.com/savings/isa-switch-calc/

I would imagine the only reason you were able to add money from both the 2022-23 and 2023-24 tax years is because you opened the ISA in March (or before 5th April) and the funding window for Santander ISAs taken out around March/April this year was 30th April 2023, which would have allowed you to add the £15k from this tax year's allowance - I only know this because I opened one around that time too

Albermarle

 I don't seem to be add further funds to it when logged in ( I have 5k left in my allowance for this tax year)

You should carefully read the main terms and conditions for any fixed rate account. It will be clearly stated when and for how long you can fund them before the window is closed.

A few only allow one initial deposit and that's it . A few allow deposits for quite a long period. The large majority allow funds to be added within a fixed time from opening the account, usually 14 to 30 days.

buyhighselllow

refluxer said:

As it was for 4.15%, I'm guessing you took out a Santander 1 year ISA some time around March/April this year (so the 2022-23 tax year, not 2021-22) ?

With a few exceptions (eg. Barclays and Shawbrook), fixed rate ISAs normally only have a limited funding window so you can't add new subscriptions beyond that window (which would explain point number 1) and you'll have lost any remaining, unused ISA allowance for this tax year.

One way round this would be to transfer to another provider which would then give you a new funding window in which to add your remaining allowance, but transferring an ISA midway through a fixed rate period will incur a penalty.

To work out whether it's worth paying the penalty and switching to a better rate, put your figure into MSE's 'ditch and switch' calculator...

https://www.moneysavingexpert.com/savings/isa-switch-calc/

I would imagine the only reason you were able to add money from both the 2022-23 and 2023-24 tax years is because you opened the ISA in March (or before 5th April) and the funding window for Santander ISAs taken out around March/April this year was 30th April 2023, which would have allowed you to add the £15k from this tax year's allowance - I only know this because I opened one around that time too

nailed it
thank you

refluxer

buyhighselllow said:

nailed it
thank you

No worries - HTH.

FWIW, as you're already roughly half-way through your 1 year fix and Santander have a relatively high early withdrawal penalty (120 days), I don't think that current rates will be high enough to make it worth switching to a 5.72% Charter fix, never-mind the 5.2% fix with Santander.

I obviously don't know your exact figure and dates though, so do put them into the MSE Ditch and Switch calculator to be sure.