Multiple Cash Isa Accounts

Madforsaving1

I have £42k in a fixed one year cash ISA that is soon maturing, on the 12th July, from last tax year.  I also have £20k that was put into a regular 1 year fixed bond at about the same time. 

My plan was to open a new cash ISA  with the 20k cash and transfer in the 42K from the ISA. 

I believed that the one year fixed bond would mature 1 year from the date of the deposit but having only just read the certificate I find out it is due to mature on 31st August.

The existing Cash ISA is with Paragon and they have given me the option to renew for 18 months at 4.95% (this is what I WAS going to do plus add the 20K to). Obviously the window for funding the account would be too long to wait for the 20k to be available.

Am I right in thinking that I can now renew for 18 months then in 6 weeks open a new 1 year fixed cash ISA (with Shawbrook for example) and use the 20K cash from this year's allowance? effectively having an 18month fix with 42k in and a 1year fix with 20k in

I did think about using an easy access ISA for the 42K for 6 weeks then open a fixed Cash Isa in 6 weeks and transfer it again to there plus add the 20k new allowance.  Is this permitted or is it too many transfers/too many openings?

Are there any other options? I don't mind having the money spread over more than one ISA but my plan was to try and get the money all together. I will have another 20K in about a year that I would like to put somewhere tax free so may have a similar problem then!
Please go easy on me - I'm new here!

JGB1955

Madforsaving1 said:

.

Am I right in thinking that I can now renew for 18 months then in 6 weeks open a new 1 year fixed cash ISA (with Shawbrook for example) and use the 20K cash from this year's allowance? effectively having an 18month fix with 42k in and a 1year fix with 20k in  YES

I did think about using an easy access ISA for the 42K for 6 weeks then open a fixed Cash Isa in 6 weeks and transfer it again to there plus add the 20k new allowance.  Is this permitted or is it too many transfers/too many openings?  YES - not a problem.  You can open as many ISAs as you want - but only add £20K of NEW money each financial year.  OLD money doesn't count.

Are there any other options? I don't mind having the money spread over more than one ISA but my plan was to try and get the money all together. I will have another 20K in about a year that I would like to put somewhere tax free so may have a similar problem then!
Please go easy on me - I'm new here!

Answers in bold

elkiedee

If you do find somewhere to put all your current ISA savings together, by April 6 next year you'll have £62K plus interest - I think if you're getting a good rate of interest that will be more than 3K so you'll have a bit over £65K.

So then adding your ISA allowance of 20K for 2025/26 will probably take you over the 85K financial services protection limit (plus another year's interest next year, even if this is at a lower rate). So bringing all your ISA savings together with one provider will be fine until next April but you probably need to look at splitting ISA savings next year. If you are saving up your 20K this year for next year's ISA with the same company, this might be an issue sooner, as the 85K limit is for all your money held in one bank/building society etc.