ISA account transfer and creating new ISA

ewicc

I have an old ISA account which I have had with Barclays for many many years.. it only has a 1.25% rate. Can I move this to another bank/provider, also if I move it before April 5th will the amount i move to a new bank affect the limit how much i can put into a new ISA for this tax year.
For example if my existing ISA has £10K and I transfer across to new bank/provider, does that mean I can only put another £10K to max out my 2024/25 allowance into another ISA or the same ISA account? 
Thanks all

mebu60

The £20k limit is for new money within the tax year, transfers don't count. When you open the new Cash ISA ensure that it accepts transfers-in and ensure that you action the transfer with the new provider, relevant questions will be asked during the application process. You can add £20k of new money prior to the end of the current tax year (if you're quick) and £20k again from 6 April. 

FrugaiMacDugal

You still have time to put £20k in for this tax year, 24/25, and then from 6th April 25 another £20k in new ISA for tax year 25/26.

If you want to transfer, never withdraw money from a cash ISA! You'll immediately lose all the lasting tax benefits.

Instead, speak to the new provider and fill in an ISA transfer form. Your new provider should then sort it all out, including moving the money over for you – keeping your ISA cash permanently tax-free.

BikingBud

ewicc said:

I have an old ISA account which I have had with Barclays for many many years.. it only has a 1.25% rate. Can I move this to another bank/provider, Yes

 also if I move it before April 5th will the amount i move to a new bank affect the limit how much i can put into a new ISA for this tax year. No

For example if my existing ISA has £10K and I transfer across to new bank/provider, does that mean I can only put another £10K to max out my 2024/25 allowance into another ISA or the same ISA account? 
Thanks all

You must transfer existing ISAs to retain the ISA wrapper, this will protect the investment and all accrued interest from tax.

Transfering before or after Apr will not affect next year's limit as you are bringing old money forward.

ewicc

Thank you.. how long does creating a new ISA and transferring money from an existing one normally take as well transferring new money into it take?

Aretnap

As mebu 60 says, it won't affect the amount you can pay into an ISA this year or next.

Just to be clear, I'd add that you MUST use the ISA transfer process, so that the money goes directly from Old ISA to New ISA. If you withdraw it from Old ISA to your current account, then pay it in from your current account to New ISA it WILL count as a new subscription, and will reduce the amount of new money that you can pay in.

ewicc

I can see that barclays do a higher rate ISA with limited withdrawls so if I do it with them (transfer from old ISA to new one) would it make it easier and faster and then transfer new cash into from current account into the new ISA.. that would be the easiest option I am guessing?

lr1277

Creating a new ISA account: well my mum already had an account with YBS so opening the ISA account only took a few minutes once logged in. At the time we did enter her NI number. However a few weeks later they wrote asking for the NI number.

As for ISA transfers I have no experience.

I suppose it only matters how long it takes to open an ISA. When it is opened, you can put in new money. An ISA transfer I imagine can be initiated at any time so either in this tax year or the next. But as advised above, most ISA applications have a section on if you wish to tranfer in an ISA.

Edited to add: after opening the ISA, a few minutes later we put money into the ISA by using a debit card. All very easy.

Aretnap

ewicc said:

I can see that barclays do a higher rate ISA with limited withdrawls so if I do it with them (transfer from old ISA to new one) would it make it easier and faster and then transfer new cash into from current account into the new ISA.. that would be the easiest option I am guessing?

Not really. You can get much better rates than whatever Barclays are offering.

https://www.moneysavingexpert.com/savings/best-cash-isa/

It's the same form to fill in whichever bank you move to - most will let you fill it in online, you shouldn't need a paper document in the year 2025.

The transfer takes about a week to go through. If it's to the same bank it might be a day or two quicker or it might not, it doesn't really matter and having your money in your old account for an extra day is small beer compared with finding the best interest rate for the next year or two.

sammy_zammy

ewicc said:

I can see that barclays do a higher rate ISA with limited withdrawls so if I do it with them (transfer from old ISA to new one) would it make it easier and faster and then transfer new cash into from current account into the new ISA.. that would be the easiest option I am guessing?

Why the rush?

Generally a new ISA will open immediately when you apply.

A transfer will complete when it completes as it depends on the provider, I doubt it would take longer than 2 weeks. But I don’t understand why the transfer being completed quickly is a big deal.

mebu60

ewicc said:

I can see that barclays do a higher rate ISA with limited withdrawls so if I do it with them (transfer from old ISA to new one) would it make it easier and faster and then transfer new cash into from current account into the new ISA.. that would be the easiest option I am guessing?

If you're happy with the rate and the withdrawal restrictions and it accepts transfers-in then crack on.