Transferring/opening new fixed rate cash ISA

I am not sure exactly how ISAs work so I could do with a little help.
Currently I have a £20k fixed rate cash ISA with bank A that matures on April 15th this year that I opened for the first time last year. But I have seen a much better fixed rate cash ISA interest rate with bank B.
So after April 15th can I transfer the matured cash ISA (with interest) from bank A into a newly opened fixed rate cash ISA with bank B, then add another £20k into that same ISA?
If so which one would I have to transfer first, the matured ISA or the new cash, or doesn't it matter?

Comments

  • PeskyBlunder
    PeskyBlunder Posts: 83 Forumite
    First Anniversary Photogenic First Post
    Yes, you will be able to do this. Just make sure that the new ISA will accept cash ISA transfers in and that the old ISA matures into an easy access cash ISA rather than another fixed rate one. Bank A should be in contact with you asking what your maturity wishes are, if they haven't already.
  • Ashes2005
    Ashes2005 Posts: 3 Newbie
    First Post
    Thanks for the reply PeskyBlunder. Bank A hasn't contacted me yet but I will make sure the ISA I have will be put into an easy access cash ISA. I will check with bank B if they accept cash ISA transfers in.
  • PeskyBlunder
    PeskyBlunder Posts: 83 Forumite
    First Anniversary Photogenic First Post
    Did Bank A say what would happen on maturity when you opened it?  Do you have a copy of their T&Cs? Who is it, if you don't mind me asking?
  • Albermarle
    Albermarle Posts: 22,072 Forumite
    First Anniversary First Post Name Dropper
    I am not sure exactly how ISAs work so I could do with a little help.

    If you spend some time reading through this forum, you should become better informed about ISA rules, like the one you are asking about. 

  • Ashes2005
    Ashes2005 Posts: 3 Newbie
    First Post
    So PeskyBlunder
    I am with Nationwide and just looked it up and they say once it has matured it will go into an instant access Fixed Term ISA Maturity account. So will that be easy to transfer to the new bank?
  • t0rt0ise
    t0rt0ise Posts: 4,273 Forumite
    First Anniversary Name Dropper First Post
    You could open a new ISA now and you'll have the opportunity to say that you want to transfer an ISA in. Just tick the box that says to wait until it's matured. I've just done that myself. And I've already put £20,000 new money in too. So it's all done.
  • PeskyBlunder
    PeskyBlunder Posts: 83 Forumite
    First Anniversary Photogenic First Post
    Yes, the matured ISA account should be OK for transferring. When you open the new fixed rate ISA just be aware that there is usually a funding window after which you can't pay in new money or transfer in other ISAs. This will be mentioned in the details for the one you want to open. Also, bear in mind that the rules about ISAs change in the new tax year - basically you can pay money into more than one ISA of any type, but still subject to the overall limit of £20k per year. Hope this helps.
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