Isa Help

Confused_61

Hi Everyone
I opened an ISA in Feb 24 for 23/24 year with the maximum amount and then opened another ISA in April 24 for 24/25 year, again the maximum amount. I am a little confused regarding the maturing of these ISA,s. Am i right in thinking i can only transfer the £20k from one of these ISA,s to the new tax year for 25/26 in April. I'm not sure what to do with the other money ? Do i leave it there ? This is my pension money and don't want to do the wrong thing. Any advice would be appreciated, thank you

Mark_d

The £20k limit is a limit on how much you can pay in to an ISA each tax year.  It is not related to transfers.

You can transfer your ISAs as many times as you like.  It does not affect the £20k of new money you can contribute in the 25/26 year.

Ayr_Rage

ALL monies (capital AND interest) in ISAs can be transferred at any time to any other ISA you like, subject to any conditions of the providers.

What you NEVER do is remove any funds, always transfer and only remove anything you need to spend.

Maturing ISAs are not counted as NEW MONEY, so every tax year you get a new £20,000 allowance.

Confused_61

Thank you, so my first Isa matures in Feb and the second in April. If i leave them both in the Isa,s and then open a new ISA for 25/26 year , can i transfer all the money from both to the new ISA ?

Confused_61

Think im a bit confused lol
If i leave both where the are and open up a new ISA for 25/26 year with say £5k i can then transfer my previous 2 years Isa,s into 25/26 as this is not now savings, only the £5k is ? Also i have received an e mail from the bank advising 1 of the isa is maturing and asking me what i want done with the money, any advice would be grateful please

PRAISETHESUN

Confused_61 said:

Thank you, so my first Isa matures in Feb and the second in April. If i leave them both in the Isa,s and then open a new ISA for 25/26 year , can i transfer all the money from both to the new ISA ?

The £20k limit is solely for new money. There is no limits for transfers. It doesn't matter if your previous years ISAs have a balance of £1 or £1 million, transferring them to another ISA would not count towards your limits. So yes, so you can transfer both 23/24 and 24/25 ISAs into a new ISA in 25/26. 

When you do the transfer, make sure you use the dedicated ISA transfer process. Usually this involves filling out a form with the provider you wish to transfer to. DO NOT withdraw the cash yourself.

Confused_61

Thank you for replying 

Ayr_Rage

Whether you can transfer into a 25/26 ISA depends on the rules of the new ISA too.

If you pick a fixed rate/term then there may be a time limited funding window for you to make subscriptions and transfers.

You need to do your research.

As for your maturing ISA, if none of the maturity options are competitive then there is normally the ability to let it convert into an Easy Access ISA with the current provider that will probably have a rubbish rate, but if you do that you can easily transfer out to the new chosen home for your money without delay or penalty once that home is selected.

t0rt0ise

Just to add, you don't need to wait until the new tax year to transfer the maturing ISAs. You can transfer the February one as soon as it matures if you like and that way you will likely get a better interest rate than waiting.

badger09

Confused_61 said:

Hi Everyone
I opened an ISA in Feb 24 for 23/24 year with the maximum amount and then opened another ISA in April 24 for 24/25 year, again the maximum amount. I am a little confused regarding the maturing of these ISA,s. Am i right in thinking i can only transfer the £20k from one of these ISA,s to the new tax year for 25/26 in April. I'm not sure what to do with the other money ? Do i leave it there ? This is my pension money and don't want to do the wrong thing. Any advice would be appreciated, thank you

Have you considered saving your ‘pension money’ in a pension, rather than an ISA?
If not, I suggest you think about it. 

Also, saving ‘pension’ money is usually long term, so, regardless of the tax wrapper, investment is almost certainly better than cash savings.