ISA QUESTION

Davek3737

I have a one year fixed ISA with bank A that matures in May 2024 using my full allowance for 2023/24.

I wish to open another fixed ISA in APRIL 2024 with bank B using my full allowance for 2024/25.

Bank B tell me if i open a 1 year fixed ISA with them in April  i then cannot transfer over the ISA from bank A when it matures in May as i would be over my limit and would would not be allowed to open a separate new ISA to transfer into. They stated the maximum you can have in an ISA is £20,000 and this has to include transfers from other ISA accounts from previous years. 

Does this sound correct as i thought your allowance is in effect compounded each year so using your full allowance each year in 5 years you could have £100k is ISA'S , just as long as you dont fund them with more than £20k of non isa money each year. 

Albermarle

I have a one year fixed ISA with bank A that matures in May 2025 using my full allowance for 2023/24.

I presume you mean it will mature in May 2024, not 2025?

I wish to open another fixed ISA in APRIL 2025 - Ditto 

Otherwise the bank is talking complete rubbish, and you are right.

We see quite often on here examples of poorly trained banks staff giving wrong info on ISA's.

Davek3737

Albermarle said:

I have a one year fixed ISA with bank A that matures in May 2025 using my full allowance for 2023/24.

I presume you mean it will mature in May 2024, not 2025?

I wish to open another fixed ISA in APRIL 2025 - Ditto 

Otherwise the bank is talking complete rubbish, and you are right.

We see quite often on here examples of poorly trained banks staff giving wrong info on ISA's.

Albermarle said:

I have a one year fixed ISA with bank A that matures in May 2025 using my full allowance for 2023/24.

I presume you mean it will mature in May 2024, not 2025?

I wish to open another fixed ISA in APRIL 2025 - Ditto 

Otherwise the bank is talking complete rubbish, and you are right.

We see quite often on here examples of poorly trained banks staff giving wrong info on ISA's.

Thank you so much..yes I got my years muddled up so corrected them. I thought I was correct and it is infuriating that banks give bad advice.  

GrubbyGirl_2

If you open a fixed ISA in April chances are you won't be able to transfer in your maturing ISA as fixed tend to have a limited amount of time that you can pay money in so do check the T&Cs.  Nothing stopping you opening another fixed to transfer your maturing ISA into

Davek3737

GrubbyGirl_2 said:

If you open a fixed ISA in April chances are you won't be able to transfer in your maturing ISA as fixed tend to have a limited amount of time that you can pay money in so do check the T&Cs.  Nothing stopping you opening another fixed to transfer your maturing ISA into

Are OK.. I did notice some say transfers within 30 days only. Is OK to have 2 fixed cash ISAs though. I did read you can only have one in which case I could wait a month or so and open and transfer at the same time. Its very confusing and I consider myself quite savvy 🤔

Albermarle

It is OK to have as many fixed rate cash or non fixed rate cash ISA's as you like. The two restrictions are that:
You can not add more than £20K of new money to an ISA in a tax year
You can not add new money to more than one cash ISA in a tax year ( but you can after April 6th due to a change in the law) Unless the provider is one of the few who allow this.

You would probably benefit from having a read through the forum, as it should help to reduce the confusion around ISA rules.

Davek3737

Albermarle said:

It is OK to have as many fixed rate cash or non fixed rate cash ISA's as you like. The two restrictions are that:
You can not add more than £20K of new money to an ISA in a tax year
You can not add new money to more than one cash ISA in a tax year ( but you can after April 6th due to a change in the law) Unless the provider is one of the few who allow this.

You would probably benefit from having a read through the forum, as it should help to reduce the confusion around ISA rules.

Thanks..doesn't help when one of my banks gave me the wrong information in the first place.