Transferring a fixed rate ISA after it matures, but without it going into a non-ISA account

RiskyScientist

Hello - apologies if asked before, I didn't spot this question in the forum.
I have an Oak North fixed rate 1 year ISA that matures 28th Feb 2025.
I would like to transfer it to whatever the best cash ISA is just after maturity.
But if the ISA converts into a regular (non-ISA) savings account just after maturity, then when I transfer the ISA to a different provider, would this not count towards my ISA allowance as it looks like a "new ISA investment"?
If not, how is this avoided please?
Thanks!

eskbanker

OakNorth will notify you of the maturity options, but the default one should be the funds being placed in an easy access ISA rather than being withdrawn outside the tax wrapper.

Albermarle

It would be very unusual for a provider to put a matured ISA into a non ISA account. In fact I am not aware of it ever happening.

dingling68

When you get them, your maturity details from OakNorth will tell you what will happen to your final balance. Often the account matures into another ISA at a lower rate allowing immediate access. You usually have to give instructions as to what you would like to happen when the account matures.
It may tell you on the documentation you got when opening the account as well.
I haven't had an ISA with OakNorth so not sure on the specifics, but if you check out the separate ISA section at the top of the savings page, someone may have asked the question on there

RiskyScientist

Thanks all - good to know!
This makes total sense.

refluxer

Below is what OakNorth say about the future maturity of a fixed rate cash ISA I opened with them in April last year, so your options are likely to be the same (but you should check if you want to be 100% sure, obviously).

Basically - if you don't like the look of OakNorth's ISA renewal rates, then you can just let it mature into an Easy Access Cash ISA, open a new ISA elsewhere and arrange the transfer from there. If you want to retain the money within an ISA and not have it count towards the current tax year's allowance then you must use the new ISA provider's ISA transfer process (so don't attempt to withdraw or move the money yourself).

It's worth noting that OakNorth's renewal rates are often higher than those available to all, so make sure you check the renewal rates they offer you within online banking as they may be higher than those on their website. In my experience, the difference can sometimes be small but occasionally it's substantial.

We will write to you at least 14 calendar days before your maturity date to explain your options. We may also send your additional reminders during this time to inform you of the options available as follows:

• transfer your entire account balance (principal and interest) to your nominated bank account;

• reinvest the principal in another available deposit product with us, and transfer the interest you earned to your nominated bank account;

• reinvest your account balance (principal and interest) in another available deposit product with us (provided this wouldn’t put you above the maximum balance limits); or

• reinvest a portion of the principal in another available deposit product with us and have the remainder of the principal and interest paid to your nominated bank account.

If we do not receive your instructions before the account maturity date, the total amount will be automatically transferred to an OakNorth Easy Access Cash ISA. Please See our Easy Access Cash ISA deposit account page on our website for the current interest rate.

Isarulesaretoocomplex

Mines just matured as of today Oak North.  They offered to reinvest at 4.51 which is 0.2 higher than the rate offered for a new fixed rate. I've reinvested and added 20k for this year's isa which is allowed for up to 30 days.