Cash ISA advice...MSE newbie

kes68

Hi all...after some advice and information from knowledgeable members.
I have £20,000 in my current account and looking to save some of it sensibly.
I have seen all the 'use it or lose it' headlines about utilising my 2023/24 isa allowance and opened a 1 year fixed rate cash isa with my bank within the last week.
I have yet to deposit any money in it and was also hoping to save approx £1000 a month and pay that into a new fixed rate 1 year cash isa for 2024/25.

My question is..what happens to the 2023/24 isa come April 5th.
What can i do with it...will it still earn interest etc?

With the deadline approaching i'm so confused about what to do.
Any advice would be really appreciated.

masonic

Your 2023/24 cash ISA would continue to operate as normal beyond the end of the tax year.

On the subject of saving £1000 per month into a fixed rate cash ISA, be aware that most fixes do not accept additional deposits outside of a narrow 14-30 day window when the account is opened, so you may need to explore other types of account. There are non-ISA regular saver accounts that pay more interest even after deduction of basic rate tax than you'd get from a 1 year fixed ISA.

Reed_Richards

Most fixed rate cash ISAs do accept transfers in.  My advice is to take all that you can spare from your current account and "park" it in an Easy Access Cash ISA before 6th April.  This will buy you time until you decide exactly what you want to do and how much you can afford to save.

Subsequently you can withdraw some money from the Easy Access ISA and spend it or transfer some or all of it into a Fixed Rate Cash ISA.  But this is only possible if you have not yet put any money in the Fixed Rate ISA you just opened and you don't do so before 6th April.  

kes68

Thanks for your advice chaps. Much appreciated!