Dilemma: New ISA v top up existing

andyeyeam

I have a fixed rate 1 year ISA for tax year 23/24, from Barclays with 20K that matures in September this year. I want to add another 20K for tax year 24/25 and I do not know what happens if I just top up existing. I feel like I want to take our a new one to ensure I get another fixed rate. What do others do? Any advice will be appreciated. 

slinger2

I don't know the specifics for your Barclay ISA, but generally you can't top up fixed rate ISAs except in a short window at the start. You could wait until it matures and then top up (assuming that's allowed). Personally I prefer to have a number of Cash ISAs, mostly fixed rate maturing at different times. However it's a personal thing.

Reed_Richards

Yes, it's very unlikely that the rules permit a top-up of your fixed rate ISA so you don't need to worry about what to do.

refluxer

Yes, Barclays are one of the few ISA providers who allow you to add new subscriptions throughout the duration of the fixed rate period.

What is the rate of the Barclays ISA ?

If it's substantially higher than the fixed rates currently available, then paying your 2024-25 allowance into it now will ensure you get that higher rate but that'll obviously only be for 3 months so you have to weigh up that benefit against where you think fixed rates might be in September if you'd be looking to fix again at that point. If you think they'll be lower than they are now (BoE rates cuts are expected in the coming months), then it might be better to forgo that 3 months on a higher rate and take out a new fixed rate ISA with your new subscriptions now instead.

It's likely to be a gamble whichever you choose, but knowing the Barclays rate might make it easier for others to offer their opinion on what they would do.