isa transfer queery

Currently have easy access cash isa, no transactions this financial year.
In November will be receiving a pot of money of which I want to use this years isa allowance £20'000
I intend putting it into 1 year fixed which is a lot more interest.

Order of investing
1.Open new account in November with £20'000 then transfer all or part of existing cash isa?
2. Transfer from existing isa now, then transfer my £20'000 allowance in November?

There is my confusion, if I do option 2 as I understand it then my annual allowance has already been used so cannot top up anymore?

Hopefully you can understand what I am asking

Many thanks Bob


  • Albermarle
    Albermarle Posts: 21,181
    First Anniversary First Post Name Dropper
    Suggest you read through the sub forum for ISA's where there are lots of threads about ISA transfers.
    ISAs & tax-free savings — MoneySavingExpert Forum

    The answer is that transfers from previous years do not affect your ability to add £20K in new money this tax year.
    Your problem with Option 2 will be that if you open a fixed term ISA ( or non ISA account) in most cases you have to fund it within a fixed window of usually 14 to 30 days, either with new or transferred money.
  • ColdIron
    ColdIron Posts: 8,679
    First Anniversary Name Dropper Photogenic First Post
    Transfers of previous years ISAs do not affect your current year allowance so it doesn't matter which way around from that point of view. Your problem with 2) is that your provider will probably not accept additional contributions to a fixed term account
  • etienneg
    etienneg Posts: 443
    First Anniversary First Post
    There's no legal requirement to end up with all the money in one ISA. The only rule is that all the new money in this tax year has to be kept together.

    So, for example, you could transfer your existing ISA into a fixed rate one now. Then in November you could open another ISA (fixed rate or easy access) for the new £20,000.
  • If you transfer your old ISA now, there will typically be a limited window of opportunity when you can add more money to any fixed interest investment.  For example it might be 14 days from opening or until the account is no longer available to new applicants, whichever is the longer.  So if you go with option 2 you might have to put your November money into a different ISA.  And if you go with option 1 you may find that the account you want to put your money in is no longer available.
  • rkc
    rkc Posts: 8
    Combo Breaker First Anniversary First Post
    Thank you all for advice, it is very much appreciated
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