Cash ISA question

Cloth_of_Gold

Sorry if this has been asked before but I have used my cash ISA allowance for 23/24 and want to open another for 24/25. Can I open it this year but not fund it until 6 April or do I have to wait until 6 April to open it?

elkiedee

You can't make new subscriptions into an ISA until 6 April but you can open it. If you've found an account with a better rate (and/or terms & conditions) than the current one, and the provider of the new account accepts transfers, you could also apply for the new account and ask them to transfer your existing ISA savings in - this won't affect next year's tax allowance. So if you apply to open the account and do an ISA transfer of your £20K (and interest)  from 2023/2024 (and any previous years savings in that account), you will still be able to pay in up to £20K to ISA(s) in 2024/2025

Cloth_of_Gold

No, I don't want to transfer from my existing ISA - the rates are lower now. What I'm asking is whether I can open a new one for 24/25 now (which will be funded with 'new' money) if I don't fund it until 6th of April or if I can't even open it until then.

badger09

Cloth_of_Gold said:

No, I don't want to transfer from my existing ISA - the rates are lower now. What I'm asking is whether I can open a new one for 24/25 now (which will be funded with 'new' money) if I don't fund it until 6th of April or if I can't even open it until then.

Yes you can open it now & fund it on or after 6 April. 

Cloth_of_Gold

badger09 said:

Cloth_of_Gold said:

No, I don't want to transfer from my existing ISA - the rates are lower now. What I'm asking is whether I can open a new one for 24/25 now (which will be funded with 'new' money) if I don't fund it until 6th of April or if I can't even open it until then.

Yes you can open it now & fund it on or after 6 April. 

Thank you.

Ocelot

Here's an example of this:

https://www.aldermore.co.uk/savings-accounts/personal-savings-accounts/cash-isas/fixed-rate-cash-isas/3-year-fixed-rate-cash-isa/

Have you used your £20,000 tax free ISA allowance for 2023/2024? 

If not, you only have until 2pm on 3rd April to submit your online application. 

During your application, we’ll check your identity, address and nominated bank/building society account match. If we’re unable to validate this, we’ll let you know at the end of your application, as it may mean you won’t be able to open a Cash ISA account in time for the end of this tax year.

Once your account is opened, you have up until the 5 April to fund your Cash ISA. To login, click here.

Any money received from 6 April will count towards your subscription for the 2024/2025 tax year.

Cloth_of_Gold

Yes, I've used up my full £20K allocation for this year. I'm looking ahead for next year.

Ocelot

Cloth_of_Gold said:

Yes, I've used up my full £20K allocation for this year. I'm looking ahead for next year.

Sorry for the confusion, that was a quote from the website, not a question!

VKE

Cloth_of_Gold said:

Sorry if this has been asked before but I have used my cash ISA allowance for 23/24 and want to open another for 24/25. Can I open it this year but not fund it until 6 April or do I have to wait until 6 April to open it?

Both my partner and I have done exactly what you want to do.
We're happy with where our 23/24 ISA's are but we've both opened OakNorth 2yr Fixed Cash ISA's yesterday which we won't fund until after 6th April when some Fixed Cash Savers mature

gele

VKE said:

Cloth_of_Gold said:

Sorry if this has been asked before but I have used my cash ISA allowance for 23/24 and want to open another for 24/25. Can I open it this year but not fund it until 6 April or do I have to wait until 6 April to open it?

Both my partner and I have done exactly what you want to do.
We're happy with where our 23/24 ISA's are but we've both opened OakNorth 2yr Fixed Cash ISA's yesterday which we won't fund until after 6th April when some Fixed Cash Savers mature

So just a clarification on the transferring in, if you have a fixed rate ISA that wont mature til later in the year, can this then be transferred in to a 2024/25 one at any time during that tax year. I know fixed ISAs have a time window to allow new subscriptions but wasn't sure if at a later date another maturing fix can be transferred in. For example if I open a fix now, pay new money in after April 6th can I then also transfer in a fix maturing in August. I've had ISAs for a while but have generally stayed with the same building society as their renewals have been decent rates. Thinking now they're definitely going to be lower than I can secure now.

CrickJon

I don't believe you can do that. That is the risk of fixed rate ISAs. You get the certainty of a rate but you'll miss out on anything that happens until it matures. You could look at a new fixed rate ISA a month or so before and check that the window for adding funds is after the maturity date. Unfortunately I think rates will be lower then. I am in the same boat as you, mine matures in September (fixed with Leeds BS at 5.5%).