New ISA rules - treating an easy access cash ISA like a regular saver, before transferring to a fix?

coldasISA

Hi all,
 Newby here trying to get my head around the new ISA rules from April. I have some money in a 1yr fixed cash ISA maturing in November '24. Am I ok to open an easy access cash ISA in April and 'drip feed' spare cash into it monthly until November, then transfer everything from both the ISAs into a new 1 yr fix cash ISA with whoever has the best rate at the time? 
 When I transfer the money in Nov, will my easy access ISA be closed automatically? I would like to keep drip feeding money into it for the rest of the tax year if possible. Very unlikely I will be getting anywhere close to the 20k max so that won't be an issue!
 Thanks. 

refluxer

coldasISA said:

Newby here trying to get my head around the new ISA rules from April. I have some money in a 1yr fixed cash ISA maturing in November '24. Am I ok to open an easy access cash ISA in April and 'drip feed' spare cash into it monthly until November, then transfer everything from both the ISAs into a new 1 yr fix cash ISA with whoever has the best rate at the time? 

Yes, you can do this.

The new rules don't actually change anything in that respect (you could have done this even under current rules) - the main change to ISAs from 6th April is that you'll be able to pay your current tax year's allowance into more than one of each type of ISA at a time (eg. you'll be able to pay new subscriptions into multiple cash ISAs rather than being restricted to just the one, as you are now).

coldasISA said:

When I transfer the money in Nov, will my easy access ISA be closed automatically? I would like to keep drip feeding money into it for the rest of the tax year if possible. Very unlikely I will be getting anywhere close to the 20k max so that won't be an issue!

This aspect is one that wouldn't have been possible under current ISA rules (due to the restriction I mentioned above) so the rule changes will allow you to do this.

Whether you can or not will depend on the conditions of the easy access ISA though - if you don't want it to be closed, then simply request a partial transfer out and leave £1 in it, or the minimum operating balance if there is one.

When you choose your easy access ISA, just make sure that the account/provider allows partial transfers out. Most do, but there are some (eg. Zopa) who don't, so you need to read the T&Cs carefully. Saying that, there'd be nothing to stop you from simply opening another easy access cash ISA for any future funds, under the new ISA rules.

coldasISA

Brilliant - thanks for the info.