Hello - newbie and a few questions

Pensioner2b

Hi All. Currently considering removing £40k from H's PBs and opening 2 cash isa's in January one for me and one for my husband.  My question is if I pick a two year FR cash ISA can I put £20k in to it in January and another £20k in April when the new tax year starts or would I have to wait until the 1st year anniversary of the account to add 24/25's £20k allowance into each of our ISA's.

Albermarle

Pensioner2b said:

Hi All. Currently considering removing £40k from H's PBs and opening 2 cash isa's in January one for me and one for my husband.  My question is if I pick a two year FR cash ISA can I put £20k in to it in January and another £20k in April when the new tax year starts or would I have to wait until the 1st year anniversary of the account to add 24/25's £20k allowance into each of our ISA's.

You are mixing up two different issues.

If you have a fixed rate/fixed term savings account you normally can only add money to it when it is opened, and for a period afterwards ( 14 to 30 days) then it is closed to new deposits, and can not normally be accessed for two years in this case. This applies whether the fixed term savings account is an ISA one or not.

Separately you can not add more than £20K to an ISA in a tax year.

So what you can do is open a two year fixed ISA in January with £20K and then a new two year ISA ( with the same provider or not) one after April 6th. However the interest rate on offer may have changed by then.

Pensioner2b

Have decided to go with 2 x One year FR Isa with Shawbrook because they do allow further payments so come Apr we can add more funds to the ISA. 

Albermarle

Pensioner2b said:

Have decided to go with 2 x One year FR Isa with Shawbrook because they do allow further payments so come Apr we can add more funds to the ISA. 

Although Shawbrook are one of the few providers that allow later deposits, I think somewhere in the T's & C's you will find a clause stating that they can close it to new payments/withdraw the product  at any time. 
I am not 100% sure but I would be surprised if not as if interest rates dropped, there would be a flood of money into them.

GrubbyGirl_2

Pensioner2b said:

Have decided to go with 2 x One year FR Isa with Shawbrook because they do allow further payments so come Apr we can add more funds to the ISA. 

There are better interest rates than Shawbrook out there.  As others have said if BoE interest rates drop they can close it to new money, indeed it doesn't even need to be a reduction in the base rate as I can attest to having opened a fixed rate ISA with Charter the day before they announced the latest inflation rate had gone down on that day they immediately withdrew the product and rates dropped by 0.5% and haven't recovered.  They are clearly anticipating base rates going down.

If it were me I'd go for the best rate now and open another at the best rate on 6th April