ISA Maturity question

Swatmat

Hello MSE forum,

apologies if this question has been asked before, I did browse but couldn't find the same circumstances.

Anyway, I have a Barclays ISA from 23/24 that's due to mature on the 28 of this month (a week or so before the financial year changes) can I transfer it in to another ISA account within Barclays when the ISA matures? At present, it will auto transfer to a 1.25% rate one, and I'd prefer it go into a 4.05% 1 year fixed that they are currently offering (when it matures it will be £20900 and change

I have already used my 24/25 ISA allowance (20k in a trading 212 Cash ISA). I was planning on setting up a new ISA after the Tax year changes with more cash currently from my current account.

Furthermore, I don't want to break the rules by opening 2 ISA's in one year (both would contain at least 20k each)

any advice or guidance would be most helpful, I've read guides and I can't seem to get a firm answer on whether what I would like to happen is in line with the rules.

PRAISETHESUN

The rules changed this tax year - you can open and fund as many ISAs as you wish, subject to the annual subscription limit of £20k. The caveat is that some providers only allow you to open and contribute to one ISA you hold with them, but they cannot restrict you depositing with other providers. The limit also only cares about new money, so transfers of money deposited in previous tax years doesn't count. Just make sure to use the dedicated ISA transfer process to move your maturing ISA elsewhere.

slinger2

Yes, you can transfer it to another Barclays ISA without any worries. The £20k allowance relates to "new" (24/25) money going in, and you're just transferring an old 23/24 ISA. Don't be tempted to withdraw the money as it'll then be outside the ISA system. Hopefully you can simply ask Barclays to do it when the old one matures.

PeskyBlunder

Rather than going with Barclays' fixed rate ISA I would let it auto transfer and then open a fixed rate ISA with another provider with a higher interest rate and then do a transfer into that. Just make sure that any new provider will accept transfers in - I think most do allow them. Also remember that most fixed rate ISAs have a limited funding window.

You can now open multiple ISAs in any tax year - the 20K is just the overall limit of *new* money that you can pay in to them.

refluxer

As already mentioned, you can get much better cash ISA fixed rates elsewhere at the moment.

One good option would be to open a fixed rate cash ISA with Shawbrook because, just like with Barclays, you can continue to pay into the account throughout the duration of the fixed rate period which means that not only could you secure a good rate for your existing ISA once it matures, but you could also make use of that rate for your 2025-26 ISA allowance, which may turn out to be a good option if rates continue to fall. Shawbrook's fixed rate cash ISA rates are currently pretty close to the best currently available.

If you do open a fixed rate cash ISA in advance of the maturity date of the current one, you'll need to specify that the transfer takes place after maturity to avoid penalties.

Albermarle

refluxer said:

As already mentioned, you can get much better cash ISA fixed rates elsewhere at the moment.

One good option would be to open a fixed rate cash ISA with Shawbrook because, just like with Barclays, you can continue to pay into the account throughout the duration of the fixed rate period which means that not only could you secure a good rate for your existing ISA once it matures, but you could also make use of that rate for your 2025-26 ISA allowance, which may turn out to be a good option if rates continue to fall. Shawbrook's fixed rate cash ISA rates are currently pretty close to the best currently available.

If you do open a fixed rate cash ISA in advance of the maturity date of the current one, you'll need to specify that the transfer takes place after maturity to avoid penalties.

That works OK with Shawbrook. You can specify easily not to transfer the money in until the old ISA matures.

Swatmat

Thank you to those who answered, this has been most helpful