Can I transfer matured ISA to a new account, and then transfer new funds?

teeeeee

Hello,

I wonder if someone can help me confirm something. I currently have £11k in a Fixed Term ISA. This ISA was opened in the previous tax year, and the full £11k was also paid in the previous tax year. Now this ISA has matured, and the interest rate has dropped automatically to 2.3%.

It is my understanding that I can request an ISA Transfer from a new provider (Natwest's 1-Year Fixed Rate ISA), to transfer this full £11k, in order to get a better interest rate of 4.6%, and that this will not affect my ISA allowance for the current tax year?

1) Is this correct?

2) Does this mean that as soon as the transfer is complete, I would be able to deposit another £20k into this new account (which would then use up my allowance for this tax year), and so the account would be holding £31k?

3) Would I get the 4.6% rate for this account on the full £31k?

I hope my questions are clear, and that someone would be kind enough to help.

Thanks

eskbanker

The answer to each question is 'yes', although you don't need to transfer before adding new money to the new account, you just need to make sure that all funding is completed within any specified funding window.