ISA Allowance

Maj108

Advice please. I have a 1 year fixed rate ISA that matures in November 2025. To prevent paying tax on my savings I would like to take out a £20,000 cash ISA in April 2025. My question is will I be able to take out another fixed rate ISA when when my current one matures in November without any impact on my cash ISA?  

winkowinko

Yes, providing it's done as a transfer.

wmb194

Maj108 said:

Advice please. I have a 1 year fixed rate ISA that matures in November 2025. To prevent paying tax on my savings I would like to take out a £20,000 cash ISA in April 2025. My question is will I be able to take out another fixed rate ISA when when my current one matures in November without any impact on my cash ISA?  

Yes, but to preserve your accrued allowance and interest now inside the ISA wrapper you need to make sure you use the ISA transfer process i.e. the providers transfer the money for you.  Don’t withdraw the money to your current account and start as if from scratch.

Malchester

You could do an ISA transfer of your maturing ISA into a new ISA, either variable rate, notice, or fixed but not take out an ISA by adding new money (assuming that the ISA you funded in April was on the 6th of the month or later, if it was before the 6th you would still have this year's allowance available). ISA transfers are not new money but if you do transfer make sure you go through the ISA transfer process and don't withdraw the funds as they would lose their ISA status 

Maj108

The new cash ISA will be funded by a bank transfer from an ordinary savings account. I will not be transferring from my fixed rate ISA and need to know if when this matures in November I can reinvest this in another 1 year fixed rate ISA with the same provider

Ayr_Rage

Maj108 said:

The new cash ISA will be funded by a bank transfer from an ordinary savings account. I will not be transferring from my fixed rate ISA and need to know if when this matures in November I can reinvest this in another 1 year fixed rate ISA with the same provider

When the ISA matures in November you cannot withdraw the money and invest in a new ISA as you will have used all of your allowance in April.

The provider will offer several maturity options in November, one of which may be a transfer to a new fixed term with them.

If the rate is not competitive you can transfer to another provider.