Matured ISA help

rancid-a

Hello all.

My ISA with Natwest has just matured into a Cash ISA, with interest the total amount was about £21040.

The Natwest mobile app gave me a few suggestions but none of them matched what I was hoping to do.

I managed to reinvest £20000 into a new 1 year ISA account (my mobile doesn't show an update yet and I'm hoping I didn't do something wrong) which still leaves the £1040 interest in the old matured 'Cash ISA'.

That £1040 can't go into the new ISA as it's over the £20k limit but there was no option to transfer it into my 'Everyday' Natwest account where I wanted it to pay some upcoming bills.

Not sure what to do?

Reed_Richards

You completely misunderstood ISAs.  You should have applied to the provider of your new ISA to transfer the £21,040 into a new ISA.  This would have left your £20,000 ISA allowance for the current year intact. 

It might not be too late to undo your £20,000 re-investment and make it into an ISA transfer.  This might have happened automatically if the new ISA account was also with Natwest but would not otherwise have happened unless you followed the correct procedure for an ISA transfer. 

Albermarle

Suggest you have a good read through this forum to improve your knowledge of how ISA's work.

rancid-a

@Reed_Richards. Thank you for helping. This was again with Natwest. I think I did do a transfer (not re investment, sorry) to the new ISA, the options I had was transfer to an old ISA or new ISA.

I will call into Natwest tomorrow to make sure everything is okay and see if they can undo anything I've done wrong.

@Albermarle. Agreed, I wish I had asked here before I made any changes

PRAISETHESUN

The £20k limit only applies to new money being deposited into your ISA during the current financial year. Transfers of previous years subscriptions don't count, and you can transfer as much as you want without affecting this year's subscriptions. This means there's nothing stopping you transferring the full £21040 rather than just the £20k you've already done.

But the main thing to check is that you've actually done an ISA transfer, which has a particular meaning in the context of ISAs. Basically you instruct your ISA provider to move the money (usually by filling out a form), instead of withdrawing it to your current account and moving it to the new account yourself. It would be checking with NatWest if you're unsure about what you've done.

rancid-a

@PRAISETHESUN. Thank you. I'm 100% sure it was a transfer, no withdrawl, my poor wording in the first post hasn't helped my query.
I will call into the bank first thing tomorrow and check.

t0rt0ise

You could probably still transfer the extra interest money to the new ISA if you wanted to. Otherwise you could close the old ISA completely and the money would probably be sent to your linked current account. That's what most banks do.

Reed_Richards

t0rt0ise said:

You could probably still transfer the extra interest money to the new ISA if you wanted to. Otherwise you could close the old ISA completely and the money would probably be sent to your linked current account. 

OR you could transfer the remaining £1040 to a new ISA with the ISA provider of your choice.  You can choose any ISA that accepts ISA transfers; most do.

rancid-a

Thank you @t0rt0ise, @Reed_Richards. I'm going to lift the £1040 to pay some bills and put towards a new computer
Hoping to do this with the £20k every year once it matures.