Chip flexible isa

jimjames

Spoton00 said:

jimjames said:

eskbanker said:

ni_saver said:

I think it’s maybe unclear if you mean you wanted to add the £17000 from Chip and the £20000 new money to T212 before moving the £17000 back to Chip which wouldn’t be allowed, but I’m not convinced you did mean this so think it’s possible there might just be crossed wires between you and some other posters who have all posted accurate information.

Spoton00 said:

I plan to withdraw the most of the funds from the Chip isa and deposit them in the 212 isa, manually not through isa transfer. Obviously because 212 has better interest rates than chip. My intention is to hopefully fund the 212 isa with £20000 before April and also return the £17000 back  into the Chip isa before April 5th as well

i.e. earning the higher T212 interest on £37K for some of the year, which wouldn't be permitted without a transfer.  I have to say that it's still unclear why OP doesn't want to transfer from Chip to T212 though....

One reason I could see would be that once a Chip ISA is transferred (closed) then they won't allow you to open another with them

I'll only have £20000 in my 212 isa this year, but would like to replace the £17000 I withdrew from my Chip isa before April, which will come from another source, so that I can keep the tax free rapper on it. What I really need confirmed is can I return the £17000 into Chip isa this year even though it was initially deposited in 2023-24 tax year?

Yes that's my understanding that you can do that

slinger2

It doesn't matter when the money went in. It matters which tax year you withdrew it. You need to replace it in the same tax year.