ISA Help

Js4490

Hi, apologies if this is a repetition of other questions. I am just struggling to comprehend something and wanted to ask very clearly so that I can understand.

I opened a 1 year fixed ISA with RBS at the end of the tax year (before the deadline), and put the full £20,000 allowance into it. I have some more savings and want to add another £20,000 to that ISA and use up my current years allowance. 
The question I have is:
When the fixed term ends that ISA drops significantly in terms of rate, can I transfer all the money in that ISA account into a new ISA without it affecting that tax year. So to be clear I'm talking about the tax year 25-26. Lets say it's April 6th 2025 and the start of net years tax year, if I have £40,000 (not including any interest), can I put that money into a new fixed rate ISA and still have my new allowance for that year or will it affect that?

Hope that makes sense and apologies if I'm not being clear enough!

Thanks

AstonSmith

Js4490 said:

if I have £40,000 (not including any interest), can I put that money into a new fixed rate ISA and still have my new allowance for that year

Yes that's correct, you'll get to keep the new allowance. Just make sure you initiate an ISA transfer, rather than withdrawing the money and attempting to pay it into a new ISA.

eskbanker

As long as you use the receiving provider's ISA transfer process, then any transfers between products don't affect your allowance for the current year.

Js4490

Great thank you!

Albermarle

Hi, apologies if this is a repetition of other questions

It is a question asked very regularly. You would probably benefit from spending some time scrolling through the forum, as it is a good source of info about ISA's.