New ISA in April - what to do with current one maturing in Aug

sorethumbs1992

I have a current ISA that matures in Aug 2025
I'd like to make sure I open a new one for 25/26 when they become available.

Always prefer to have them in one pot.  I think you can only transfer in an old ISA shortly after opening a new one so the August one will be past the deadline.

The rate will probably drop on the August one as soon as it matures.  What should I do with it?

Leave the 25/26 one open and active for the year and transfer the 24/25 one to a better deal - then wait and consolidate them together in April of 2026?  

Or can I open one in April, then in August after maturity transfer them both to a completely new ISA

molerat

You can pretty much do as you wish as long as you get the new provider to initiate a transfer to keep the tax free status.  The only problem is that if it is a fixed term product there could be interest penalties, often 90 days loss of interest, if closing early.

sorethumbs1992

I think I'll open a new April 1 year fixed and leave it, then transfer Aug to a non fixed one somewhere else

And next year they will be both available in April 2026 to consolidate in to one new one.

I think that makes sense 

t0rt0ise

Keeping them together in one ISA is fine until you get near the 85,000 safety limit. If the bank goes bust you lose anything over that. So growing some separate ones is not a bad idea anyway.

Qyburn

sorethumbs1992 said:

I think you can only transfer in an old ISA shortly after opening a new one so the August one will be past the deadline.

That depends on the details of the new account. For example Virgin make it really easy to transfer as part of the account opening process. After the account's open you need to use a manual form, but it's still possible.  On the other hand Zopa lets you fill in an online transfer in at any time.