Changing ISA type

My DH has an Easy Access ISA with Virgin which was taken out a few months ago, currently with £7k.  I have £20k in a fixed one year with Virgin at 5.85%. 

We have funds available to top this up to £20k in the next week due to a fixed rate maturing.  The best fixed rate at the moment with Virgin is 5.65% for one year, I was thinking to open this with £13k then transfer the easy access over.  Is this within the rules? I am struggling to get an answer from Virgin. 

We opened this easy access in case we needed the funds, but we can lock them away for the year now.  We have other savings so looking at using the tax free wrapper.

Thanks for any help or advice. 

Comments

  • eskbanker
    eskbanker Posts: 29,836
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    All current year cash ISA money needs to be kept together in the same product, so the acceptable routes would either be to top up the easy access one to £20K and then transfer it to the fixed rate one, or to transfer the £7K into the fixed one and then top it up with the additional £13K afterwards.
  • Albermarle
    Albermarle Posts: 21,085
    First Anniversary First Post Name Dropper
    Forumite
    I am struggling to get an answer from Virgin. 

    If you read through this forum, you will lots of threads about this and similar subjects. So no need to contact Virgin or anyone else as the info is all here.

  • clareski
    clareski Posts: 948
    Name Dropper First Post First Anniversary
    Forumite
    Thank you.  I was confused when I read that you could only pay into one ISA each financial year, thinking that if I opened an easy access and paid into it I could not then switch to a fixed rate. 
  • eskbanker
    eskbanker Posts: 29,836
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    clareski said:
    Thank you.  I was confused when I read that you could only pay into one ISA each financial year, thinking that if I opened an easy access and paid into it I could not then switch to a fixed rate. 
    If you pay into ISA A and then transfer all of your current year money into ISA B (using the receiving provider's ISA transfer process) then you can continue to pay into B without breaching the rules.
Meet your Ambassadors

Categories

  • All Categories
  • 341.7K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.8K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards