More than 1 ISA question

LM5968

I have 1 year fixed rate cash ISA opened April 23. I ‘upgraded’ it last week  to keep money/interest in for further year and held  interest rate. My question - am I able to open another ISA in May 24 now with Max allowance or does my ‘upgraded’ one from 2023 tax year count as a new one as it was upgraded after new tax year started.

Reed_Richards

By an "upgrade" I presume you mean a transfer to a new ISA with the same provider, the new ISA having similar terms to the old one and the process handled by your provider.  In this case, any money you deposited into an ISA during the 23/24 tax year (or before that) is old money and does not count against your 24/25 tax year ISA allowance.

If by "upgrade" you mean that you withdrew the contents of your old ISA into your current account then reinvested it into a new one then that would count against you 24/25 ISA allowance.  You have to be very careful with ISAs that you follow the correct procedure when transferring one.  But if the "upgrade" has handled entirely by your provider you can be confident that the correct procedure was followed. 

LM5968

Yes I upgraded with same provider - Santander to another 1 year fixed rate Cash ISA and everything completed by Santander - no money (or the interest gained after maturity) has been moved at all and remains in account with Santander which is the plan to keep in there. I will therefore open another new Cash Isa (not with Santander) and use 2024-25 year tax allowance for it. Thank you for your help.

Albermarle

LM5968 said:

Yes I upgraded with same provider - Santander to another 1 year fixed rate Cash ISA and everything completed by Santander - no money (or the interest gained after maturity) has been moved at all and remains in account with Santander which is the plan to keep in there. I will therefore open another new Cash Isa (not with Santander) and use 2024-25 year tax allowance for it. Thank you for your help.

The fact that it was the same provider is not relevant, you could have transferred it to another provider and still be able to add another £20K this year.

Suggest some time reading through the forum will get you up to speed with ISA rules.

Reed_Richards

You could open another ISA with Santander if you wanted to.