/Fixed Rate Cash ISAs, can you transfer into one and open another, both this tax year?

Pete_London_Totnes

My question is:

If I have a 1 year Fixed Rate Cash ISA in Bank ‘A’ which matures soon and once matured I wish to transfer all of the sum into a higher rate new Fixed Rate Cash ISA in a different bank ‘B’. This sum will be above the safety net of £85k guaranteed in a bank. I do not want to add money in this current tax year to this Fixed Rate Cash ISA.

Therefore can I then open a new fixed rate Cash ISA in a different Bank ‘C’ with this year’s allowance of £20k? Therefore I will only have my original 2023 Fixed Rate Cash ISA sum + maturity interest transferred into a Bank ‘B’ Fixed Rate Cash ISA, plus a new Fixed Rate Cash ISA in Bank ‘C’ with this year's £20k maximum allowance. 

I hope this makes sense.

Is this allowed in the government’s recent ISA changes?

Many thanks for any answers

slinger2

Yes, that's allowed. In fact it was allowed before this year's changes. You've always been able to have multiple Cash ISAs. Previously you could only subscribe to one per tax year, a rule that's now gone.

If you're worried about being over the £85k limit, you could transfer part of it to another provider, Bank 'D' (provided the banks involved allow partial transfers)

Albermarle

Pete_London_Totnes said:

My question is:

If I have a 1 year Fixed Rate Cash ISA in Bank ‘A’ which matures soon and once matured I wish to transfer all of the sum into a higher rate new Fixed Rate Cash ISA in a different bank ‘B’. This sum will be above the safety net of £85k guaranteed in a bank. I do not want to add money in this current tax year to this Fixed Rate Cash ISA.

Therefore can I then open a new fixed rate Cash ISA in a different Bank ‘C’ with this year’s allowance of £20k? Therefore I will only have my original 2023 Fixed Rate Cash ISA sum + maturity interest transferred into a Bank ‘B’ Fixed Rate Cash ISA, plus a new Fixed Rate Cash ISA in Bank ‘C’ with this year's £20k maximum allowance. 

I hope this makes sense.

Is this allowed in the government’s recent ISA changes?

Many thanks for any answers

If you read through the forum, there are hundreds of threads about ISA transfer rules, so worth a scroll through.