Made a hash of ISA transfer

Stanley22

Hello. I would like some advice on how to rectify a very poorly judged ISA transfer. 

I had 30,000 in a Charter Savings bank 1 year fixed rate ISA which recently matured. Upon maturity I transferred the money into a Charter flexible ISA saver with a rate of 4.25%. 

Earlier in the year I also put £12,000 into a Trading 212 flexible ISA and then a few months later withdraw this money for a house move. This account is still open and the balance is made up of only interest earned.

Now in a ill judged moment of confusion around the rules of flexible ISA’s I withdrew £29000 from the Charter account with the intention of putting £20,000 into the Trading 212 account to make use of the better interest rate. But In doing so I realise I’ve lost the tax free wrapper on £29,000 and have also now realised I can’t move money between flexible ISA accounts, I can only replace withdrawn amounts from the same account. So now I need to at least get some money back into an ISA this tax year while hopefully staying within the rules. 

What are my options ?
Do Many thanks.  

On-the-coast

Well you could try asking Charter nicely to reverse the transaction - particularly if very recent, but I wouldn’t rate your chances of success too highly. 

Regarding your flexible ISA sounds like you can simply place 20k there as “unwrapped money”, and then in April put the 9k into another (or the same) ISA - so not much harm done really. 

eskbanker

I don't see the problem?

If you withdrew £29K from a flexible ISA and want to keep it within the ISA wrapper then just pay it back in again.  Before doing so, you could also use £12K of it to pay into T212 to replace the flexibly withdrawn money there.

If you want to take advantage of a better rate elsewhere, use the other provider's ISA transfer process to move the funds directly.

Stanley22

Thanks for the replies. 

Ok that’s not so bad. It that case I may as well return the funds to the charter account and use a proper transfer to get a better rate elsewhere.