Combining ISAs

csharppaul

Hi all, I'm after a little advice. 

I've currently got a few fixed term ISAs that are due to mature over the next 18 months and I'd like to combine them into one to make management easier. Am I correct in thinking that the way to do this is to sign up for an easy access ISA for this year's allocation then as and when they fixed term ISAs mature I transfer them into the easy access ISA? 

If so, can anyone recommend a provider who allows transfers in throughout the year? 

Also, is there an alternative to doing the above? I'm a bit concerned if I don't do this I'll have ISAs maturing that then default to a low interest rate for 6months which I really don't want to happen. 

I think my other question would be, if I kept them separate (to make sure I don't get too close the FSCS 85k protection limit with a single provider) would i be able to put them at the end of their fixed terms into new fixed term ISA product without adding new money and it not impact my current years allocation? E.g.

2024/25
New cash into a new ISA in May, using full £20k allocation.
ISA 1 matures in June, so I transfer that to a new fixed/variable rate ISA product without adding new money.
ISA 2 matures in October, I then transfer that to a new ISA product without adding new money.

So technically I've got 3 new ISA products for the year, but only one of them is with new money? Is that permitted?

Thanks all

Albermarle

csharppaul said:

Hi all, I'm after a little advice. 

I've currently got a few fixed term ISAs that are due to mature over the next 18 months and I'd like to combine them into one to make management easier. Am I correct in thinking that the way to do this is to sign up for an easy access ISA for this year's allocation then as and when they fixed term ISAs mature I transfer them into the easy access ISA? This is one way

If so, can anyone recommend a provider who allows transfers in throughout the year? For easy access ISA's most ( all?) will do that.

Also, is there an alternative to doing the above? I'm a bit concerned if I don't do this I'll have ISAs maturing that then default to a low interest rate for 6months which I really don't want to happen. Be aware that some will default to a new fixed rate. The provider will contact you before the fixed rate ends with options. Always better to choose an option rather than let it go to the default.

I think my other question would be, if I kept them separate (to make sure I don't get too close the FSCS 85k protection limit with a single provider) would i be able to put them at the end of their fixed terms into new fixed term ISA product without adding new money and it not impact my current years allocation? E.g.

2024/25
New cash into a new ISA in May, using full £20k allocation.
ISA 1 matures in June, so I transfer that to a new fixed/variable rate ISA product without adding new money.
ISA 2 matures in October, I then transfer that to a new ISA product without adding new money.

So technically I've got 3 new ISA products for the year, but only one of them is with new money? Is that permitted? Yes

Thanks all

Comments in bold above. Reading through the forum can be a useful way to learn more about ISAs in general.