Fixed Rate Isa Confusion

Frales01

Hi. Can anyone help out there.  I have a matured FRISA With £21500 and a current FRISA which matures in May with Max of £20000.  Where do you find the rules for Fixed rate ISAs. Am I allowed to have these two ISAs and what happens ie tax on interest.

eskbanker

When fixed rate ISAs reach maturity, you should receive options to choose from - did you get a letter or message about them?  You can keep the money within the ISA wrapper, but may need to transfer to other products or providers to improve the interest, which continues to be tax-free for as long as the capital is within ISAs.

mebu60

Assuming you have only paid up to £20k of new money into the ISAs in any one tax year then yes, you are 'allowed' to have these ISAs. There is no tax on ISA interest. They are not declared to HMRC either. 

slinger2

You can have as many ISAs as you like. Each cash ISA has different terms and conditions. There's no tax on ISAs. That also applies to the interest too as long as you leave it in the ISA system.

Often a matured fixed rate ISA will have a poor interest rate. You might want to think about transferring it into something with a better rate, if that's the case.

Albermarle

If you read through the forum there are lots of threads about maturing FRISAs and what you can do with them.