More than 20k to save, can't get my head around ISA's.

hieveryone

I'm honestly absolutely clueless. 

I opened an ISA last November with 20k. 

As I understand it, I can now open a new ISA in this tax year. I am lucky enough to have another 20k to put in it. 

When November rolls around, what do I do with the first 20k? As I won't be able to open any more ISA's until the following April? I'll have 5 months with 20k sitting?


Thanks in advance

BoGoF

First things first, do you need an ISA?

Have you any non-ISA savings using your savings allowance?

refluxer

hieveryone said:

I'm honestly absolutely clueless. 

I opened an ISA last November with 20k. 

As I understand it, I can now open a new ISA in this tax year. I am lucky enough to have another 20k to put in it. 

When November rolls around, what do I do with the first 20k? As I won't be able to open any more ISA's until the following April? I'll have 5 months with 20k sitting?

You can do whatever you like with last year's ISA allowance and that includes transferring it into another cash ISA if you want to - there isn't a limit on the number of cash ISAs you can open during any one tax year.

If the current ISA is a fixed rate cash ISA, just make sure you transfer after the maturity date to avoid paying a penalty. You need to open a new ISA first (shortly before the maturity date of the old one) and arrange the transfer with the new ISA provider.

hieveryone

BoGoF said:

First things first, do you need an ISA?

Have you any non-ISA savings using your savings allowance?

I have about another 10k in 'loose' money that is a combination of children's savings, holiday savings, house emergency savings etc. 

hieveryone

refluxer said:

hieveryone said:

I'm honestly absolutely clueless. 

I opened an ISA last November with 20k. 

As I understand it, I can now open a new ISA in this tax year. I am lucky enough to have another 20k to put in it. 

When November rolls around, what do I do with the first 20k? As I won't be able to open any more ISA's until the following April? I'll have 5 months with 20k sitting?

You can do whatever you like with last year's ISA allowance and that includes transferring it into another cash ISA if you want to - there isn't a limit on the number of cash ISAs you can open during any one tax year.

If the current ISA is a fixed rate cash ISA, just make sure you transfer after the maturity date to avoid paying a penalty. You need to open a new ISA first (shortly before the maturity date of the old one) and arrange the transfer with the new ISA provider.

Ah ok, so that would be a 'transferring' from one to another? As opposed to financing from new money? 

refluxer

hieveryone said:

refluxer said:

hieveryone said:

I'm honestly absolutely clueless. 

I opened an ISA last November with 20k. 

As I understand it, I can now open a new ISA in this tax year. I am lucky enough to have another 20k to put in it. 

When November rolls around, what do I do with the first 20k? As I won't be able to open any more ISA's until the following April? I'll have 5 months with 20k sitting?

You can do whatever you like with last year's ISA allowance and that includes transferring it into another cash ISA if you want to - there isn't a limit on the number of cash ISAs you can open during any one tax year.

If the current ISA is a fixed rate cash ISA, just make sure you transfer after the maturity date to avoid paying a penalty. You need to open a new ISA first (shortly before the maturity date of the old one) and arrange the transfer with the new ISA provider.

Ah ok, so that would be a 'transferring' from one to another? As opposed to financing from new money? 

Yes, you'll submit a transfer request to the new ISA provider who then arranges the transfer for you. Money within an ISA needs to be transferred from one ISA to another in this way in order to preserve it's ISA status (you don't withdraw the money yourself).

As it's a transfer of an ISA containing funds from a previous tax year, the transfer won't count towards your 2024-25 tax year allowance.

You'll see money from the current tax year referred to as 'new subscriptions'.

hieveryone

refluxer said:

hieveryone said:

refluxer said:

hieveryone said:

I'm honestly absolutely clueless. 

I opened an ISA last November with 20k. 

As I understand it, I can now open a new ISA in this tax year. I am lucky enough to have another 20k to put in it. 

When November rolls around, what do I do with the first 20k? As I won't be able to open any more ISA's until the following April? I'll have 5 months with 20k sitting?

You can do whatever you like with last year's ISA allowance and that includes transferring it into another cash ISA if you want to - there isn't a limit on the number of cash ISAs you can open during any one tax year.

If the current ISA is a fixed rate cash ISA, just make sure you transfer after the maturity date to avoid paying a penalty. You need to open a new ISA first (shortly before the maturity date of the old one) and arrange the transfer with the new ISA provider.

Ah ok, so that would be a 'transferring' from one to another? As opposed to financing from new money? 

Yes, you'll submit a transfer request to the new ISA provider who then arranges the transfer for you. Money within an ISA needs to be transferred from one ISA to another in this way in order to preserve it's ISA status (you don't withdraw the money yourself).

As it's a transfer of an ISA containing funds from a previous tax year, the transfer won't count towards your 2024-25 tax year allowance.

You'll see money from the current tax year referred to as 'new subscriptions'.

Is there a way I can get all of the money into one ISA pot rather than having two? 

refluxer

hieveryone said:

Is there a way I can get all of the money into one ISA pot rather than having two? 

There are quite a few ways of doing this.

Have a read through this thread, where that question is discussed...

https://forums.moneysavingexpert.com/discussion/6516670/isa-fixed-rate-period-questions/p1

...and feel free to post any follow-up questions back here if you want to.