ISA Question

paulwills

I opened a fixed 2 year cash ISA with Virgin in April 2023 at 4.26%, I've now opened the 1 year 5.25% fixed with Virgin, i'm waiting to fund on April 6th, is there anything stopping me transfering the 2 year fix into the new ISA. 

Ayr_Rage

The fix may well have an early termination charge that would also apply with an internal transfer.

You'll have to check the Ts and Cs carefully as to what is permitted regarding internal transfers.

From the ISA rules point of view, your plan is sound.

Albermarle

paulwills said:

I opened a fixed 2 year cash ISA with Virgin in April 2023 at 4.26%, I've now opened the 1 year 5.25% fixed with Virgin, i'm waiting to fund on April 6th, is there anything stopping me transfering the 2 year fix into the new ISA. 

You could do it but probably there will be a penalty of up to 180 days interest for breaking the fixed term early. You will have to check the T's & C's for the exact terms of the penalty.

gravel_2

On a quick look Virgin charges 90 days' interest to withdraw early. You would have to work out the benefit of moving your existing ISA to higher % vs the penalty.

Fatboydel888

I too have a Virgin Cash ISA, first opened in Feb last year and I have just transferred it to a new Cash ISA for the coming year, I just want to check that moving it has not used my Tax allowance for the current year and I can add to it from this years allowance?

I have a further Vigin Cash ISA opened after the start of the current tax year, which I would like to add to when it matures and I migrate to a new Cash ISA after the current tax year ends, is this OK as well?

gravel_2

Fatboydel888 said:

I too have a Virgin Cash ISA, first opened in Feb last year and I have just transferred it to a new Cash ISA for the coming year, I just want to check that moving it has not used my Tax allowance for the current year and I can add to it from this years allowance?

I have a further Vigin Cash ISA opened after the start of the current tax year, which I would like to add to when it matures and I migrate to a new Cash ISA after the current tax year ends, is this OK as well?

Once money is inside the ISA wrapper it can be moved around without affecting your annual ISA allowance. If you actually withdraw from an ISA and then manually deposit it within a different ISA then that would use up your allowance.

So if you transferred it through the proper mechanism your Feb ISA amount is still a 22/23 payment and you still have 23/24 allowance available to you assuming you haven't otherwise used it since April 2023.