Fixed Rate ISA maturing mid tax year

ISA_saver_man

Hi, I'm new to this site, so please be understanding if I get it wrong.

Senario;

If i took out a 1yr Fixed Rate Cash ISA in August 2023, which matures in 2024.

In on April 6th 2024, I assume I can open a new 1yr Fixed Rate Cash ISA with the max £20,000.

When the original Fixed Rate Cash ISA matures in September 2024 the rules say it is converted into a CASH ISA unless I request it to be transferred to another provider or take the cash.

Does the transfer comply with the ISA rules as I would have two type of CASH ISA in existence in the same year with the total amount exceeding the yearly £20,000 allowance.

I'm assuming;

1. If it's converted to their product or transferred to another providers CASH ISA product (not Fixed rate) at maturity then it is continuity of the original Fixed Rate ISA.
2. If I take the cash, then I can't re-invest in 2024/25 Tax Year

Hope it make sense!

eskbanker

ISA_saver_man said:

Does the transfer comply with the ISA rules as I would have two type of CASH ISA in existence in the same year with the total amount exceeding the yearly £20,000 allowance.

This isn't an issue, the rules allow you to pay in up to £20K of new money into ISAs in any tax year, but as long as your current year money is kept together, there's no limit to how much you can have in ISAs.

ISA_saver_man said:

I'm assuming;

1. If it's converted to their product or transferred to another providers CASH ISA product (not Fixed rate) at maturity then it is continuity of the original Fixed Rate ISA.
2. If I take the cash, then I can't re-invest in 2024/25 Tax Year

If you want to keep the money tax-free within the ISA wrapper then use the receiving provider's ISA transfer process.

Albermarle

 I'm new to this site, so please be understanding if I get it wrong.

Now you have found the site have a scroll through it and see lots of questions and answers about ISA's.