23/24 ISA Allowance

Massamd

Hi All

Newbie to ISA's here, so apologies that I'm a novice in advance!!

So I took out my first Cash ISA last August (2023) with10K. Its a fixed rate one for a year.

I'm aware the deadline to use by other 10k allowance is coming up before the end of the current tax year in April 2024.

I've checked with my provider (Nat West) and no more funds can be added to that one, after the initial funding window - so what are my options?

I know that you can only pay into one type of ISA in any tax year, so have I basically restricted myself this year from what I did in August 2023?

 I'm not wanting a stocks and shares or lifetime ISA to fill up the allowance.

Also could I open another ISA  (after 5th April 2024) even though my current Fixed Rate ISA only matures in August 2024, or do I have to wait until then and transfer it?

Sorry if this is basic in advance, can seem to find the answers anywhere.

Thanks for reading, appreciate any help

Ayr_Rage

You cannot open another cash ISA this tax year.

You can open multiple cash ISAs next tax year, total limit remains £20,000

The August 2023 ISA may be able to be transferred into something you open after 6/4/24 but as it is a fixed term then there is likely to be a penalty for early withdrawal.

eskbanker

Massamd said:

I know that you can only pay into one type of ISA in any tax year, so have I basically restricted myself this year from what I did in August 2023?

 I'm not wanting a stocks and shares or lifetime ISA to fill up the allowance.

If you're put off by the concept of investing but still don't want to lose out on the remainder of your 2023/24 allowance, you could always temporarily open a S&S ISA to accommodate the residual £10K, but leave it uninvested, and then transfer it (as prior year money, i.e. not depleting your 2024/25 allowance) to a cash ISA after 6 April.

Massamd

Thanks for the replies, so if I was to open a easy access cash ISA in next tax year, I could transfer the maturing fixed rate ISA to it when it matures in August, and that wouldn't be included in next years 20K?  Thanks for all your help guys

eskbanker

Massamd said:

Thanks for the replies, so if I was to open a easy access cash ISA in next tax year, I could transfer the maturing fixed rate ISA to it when it matures in August, and that wouldn't be included in next years 20K?  Thanks for all your help guys

Correct - transfers don't count towards the annual contribution allowance, as long as they're handled via the receiving provider's ISA transfer process.