Help understanding basic ISA function!

Croftys

Hi all, I have two ISA’s- one maxed last year and one maxed this year. One is fixed untill march, the other is a cash isa and was created in May 2024.

What should I be doing leading up to new ISA allowance? (presuming there is one!)

Can I transfer them both to fixed rates without effecting any new allowance? 

There is a strong chance I will save the same amount this year. 

I’m married and can use a spouse allowance is that’s any help at all!

thanks for any help 

Newbie_John

£20k limit is for any new money entering ISA world. The money that is there can be transferred to any other ISA provider - outside of any limits although transfers quite often have lower interest rates - so double check the rates for new money and transfers.

slinger2

You can treat each ISA independently of the others. What you do to the first two won't affect what you can do with any new ISAs. If you have an easy access ISA you can simply add more money to that next year. If you go for fixed rate ISAs you probably won't be able to do that. No problem, just open a new one.

ISAs are "individual". Each of you can save up to £20k in ISAs each tax year, so you could save £40k between you if you had that amount available.

Albermarle

If you read through the forum, you will be better informed about all ISA rules.

friolento

You can preserve the tax-free nature of your existing ISAs by initiating an ISA transfer at one or more new ISA providers. Or stick with the same provider if they are offering you a better product. Just never transfer the money yourself.

You certainly can use your ISA allowance for 2025/26 as well. There is no spousal allowance but your spouse does have the same amount of ISA allowance that you do.

PRAISETHESUN

First thing to note is the name - Individual Savings Account. There's no shared or joint allowances, but each person gets a £20k subscription limit each year. This limit only applies to new money meaning existing money from previous years can be moved around without limitations, Just make sure to never withdraw the money yourself and instead used the dedicated ISA transfer process to move money between providers. 

Croftys

Thanks all, I really appreciate the quick responses. It seems I’ve been overthinking and I can transfer them at the appropriate times! Cheers for the info