ISA transfer in - can't include the interest from last year

sorethumbs1992

My Barclays fixed term ISA 23/24 recently matured and the interest was added to the total, making it around £20,810.

I've now opened a new ISA with them for this tax year 24/25 and deposited the maximum as fresh funds but had issues 'transferring in' the previous ISA to consolidate them.  It wouldn't let me complete the process.  So I rang them and said I want to transfer in last years.

The support person said you can only transfer in £20k, leaving £810 behind and he completed the transfer.

I'm now rather worried that this person has gone and made a standard funds transfer  rather than transferring the ISA in the proper way.  Is this right - you can't consolidate your previous ISA's in to one AND include the interest??

I'm worried they have now just deposited £40k as normal funds without preserving the ISA status kept from last year

Malchester

I've regularly transferred ISAs and always with the interest included. 

I am no expert but it sounds to me as though they have done a non ISA transfer from one ISA to a new one. I may be wrong. 

Ring them and speak to someone who can maybe sort it out 

sorethumbs1992

They told me the ISA was transferred as an 'ISA transfer' - she thought it weird previous person couldn't do it in one bulk move and to use the app to transfer the interest that was left behind.  That isn't instant when I try to do it so lets see.
In this day and age you think an account would tell you the information on allowance remaining etc and details on transferred funds.  All rather 'standard' balance info, not very helpful

eskbanker

Even though Barclays staff have previous for poor knowledge of ISAs (many threads about this over the years!), their products are unlikely to accept more than £20K of new money in a tax year, so there should be system validation safeguards to prevent that from happening.