Opening a new cash Isa , transferring last year matured cash Isa, Isa interest

e501

Hello, I am so muddled up about Isa

1. I have a cash Isa that will mature in July 2025.  Can I open a new cash Isa at the beginning of new financial Year which is on 6 April 2025 or do I have to wait to open my new cash Isa until my last year cash Isa matures which is in July 2025.

2.I am entitled personal saving allowance £18570. Is the Isa interest part of the £18570.

3. My husband has a cash Isa that will mature in August 2025 in bank A.  He wants to transfer all the matured cash Isa ( capital + interest) from bank A to another cash Isa account at bank B. My question is, can he open a new cash Isa in May 2025 as well as transferring his matured cash Isa in August 2025.

Thank you

 

molerat

1) ISAs are per financial year.  You can open as many as you want in a year but can only contribute £20K total new money in a tax year.  What is in ISAs from previous years is irrelevant.

2) Tax free ISA interest is of no interest to the tax man, they are only interested in taxable interest.

3)Yes. See 1)

When transferring you get the new bank to draw the money from the old keeping it within the tax free environment, you do not withdraw it and pay it over.

PeskyBlunder

3) If the ISA at bank B is a fixed rate one then you should check if the transfer can be done 4 months (May-August) after opening it. Most won't allow it but there are exceptions. He could open 2 ISAs - one in May and then another nearer the maturation date - he wouldn't need to pay any new money into it but just do a transfer.

e501

Thank you very much Molerat and PeskyBlunder. It is really really helpful

GrandmaJJ

I'm confused as well!
I already have an ISA with the maximum amount in from last financial year, can I open another one for this financial year without closing the other one?

slinger2

GrandmaJJ said:

I'm confused as well!
I already have an ISA with the maximum amount in from last financial year, can I open another one for this financial year without closing the other one?

There's no maximum amount in an ISA. You can have any amount in one. There's a maximum of £20k you can pay in each tax year.

There's no limit on the number of ISAs you can have. You can have a hundred. There's a maximum of £20k you can pay in to all your ISAs each tax year.

GrandmaJJ

Sorry to sound thick but if I have 20,000 in one ISA can I open another one with a different provider with 20,000 without closing the first one down 

slinger2

GrandmaJJ said:

Sorry to sound thick but if I have 20,000 in one ISA can I open another one with a different provider with 20,000 without closing the first one down 

Yes. You can have ISAs with many different providers. Or many ISAs with one provider or whatever you want.

You can put money into many different ISAs in the same tax year. However you can only put £20,000 in total into all your ISAs each tax year.

GrandmaJJ

That's great thank you for your help 

techdumb

I attempted to transfer my Cash ISA funds from Moneybox into a recently opened Chip ISA, only to be informed that Chip cannot accept such transfers from Moneybox and certain other providers. Wondered if anyone else has experienced this, why they don't make you aware BEFORE you commit, and if this is "fair practice."

sammy_zammy

techdumb said:

I attempted to transfer my Cash ISA funds from Moneybox into a recently opened Chip ISA, only to be informed that Chip cannot accept such transfers from Moneybox and certain other providers. Wondered if anyone else has experienced this, why they don't make you aware BEFORE you commit, and if this is "fair practice."

My Moneybox transfer to Chip went fine