Cash ISA Questions

Psyduck1980

I have a cash ISA and the fixed rate expires on 4th January. I was hoping someone on here could help me with a few questions. 

1. When the fixed rate ends will it just revert to an easy access variable rate ISA (unless I give them alternative instructions)? The provider is Shawbrook if this helps. 

2. The rate of the easy access variable rate ISA with my existing provider isn’t particularly competitive so I will be looking to move my money elsewhere. Can I do this now or do I need to wait until 5th January? 

3. I have in excess of £20k in my existing cash ISA. Can I do this over the full amount to a new provider even though it exceeds to annual subscription limit? 

Thanks in advance. 

El_Torro

1. Different Cash ISAs do different things. Some will automatically go into a new fixed rate, some will automatically become an easy access Cash ISA. Your provider will tell you what your options are and when you need to decide.

2. Better to wait until the fixed rate ends and ask for the transfer once you are in easy access. You can move it sooner but your provider will probably charge a penalty on a certain number of months of interest earned.

3. You can move it all to a new provider (or keep it where it is). The £20k limit only applies to new money going into an ISA, not any money that is already in an ISA.

refluxer

Psyduck1980 said:

1. When the fixed rate ends will it just revert to an easy access variable rate ISA (unless I give them alternative instructions)? The provider is Shawbrook if this helps. 

It'll tell you in the account T&Cs but, IIRC, Shawbrook's fixed rate ISAs normally default to a 'matured funds' account on a very low interest rate if you don't submit any instructions. If you're considering going down this route, it's often better to select a provider's 'proper' Easy Access cash ISA (if they offer one) as this will usually have a much higher rate. The reason for this is that it won't be sitting in an account on a derisory rate if the transfer is delayed. 

Psyduck1980 said:

2. The rate of the easy access variable rate ISA with my existing provider isn’t particularly competitive so I will be looking to move my money elsewhere. Can I do this now or do I need to wait until 5th January? 

You can either do this in advance or wait until the ISA has matured. If you apply in advance, the new ISA provider is likely to have a limit on this though - two weeks is typical I think, although I'm sure I've come across at least one provider who allowed you to apply for the transfer up to a month in advance. Personally, I tend to let mine mature into an easy access ISA and transfer from there as this is the route less likely to lead to problems.

Psyduck1980 said:

3. I have in excess of £20k in my existing cash ISA. Can I do this over the full amount to a new provider even though it exceeds to annual subscription limit? 

The £20k ISA limit only applies to paying new subscriptions from the current tax year's ISA allowance into an ISA (or ISAs) - a transfer of ISA funds from previous tax years won't count towards this year's allowance.

Newly_retired

if you go online Shawbrook will provide maturity options.  If they haven't already done so, you will see them soon. You can give your instructions online.

Psyduck1980

Thanks El_Torro and refluxer - your responses are extremely helpful.