Outstanding ISA interest paid to new ISA (both Nationwide)?

P1Fanatic

I've been helping my Dad with his Cash ISA. He had an existing Cash ISA with Nationwide that Matures on 4th May 2025. It was a Triple Access version which allowed up to 3 withdrawals per year including account closure. So we decided to open a new Cash ISA (still with Nationwide) with the same rate and transferred the balance of the Triple Access + this years £20k ISA allowance to the new one.

So there is interest outstanding on the Triple Access, would that automatically transfer to the new Cash ISA or be paid into the old one (when funding the new ISA there was no close option just select the full balance amount)? If the latter I would then assume I cant transfer that interest to the new Cash ISA (as it said once completed no further funding)? I guess worst case we can open another ISA and transfer the interest into that to avoid losing tax free status?

Thanks.

eskbanker

If the original ISA is still open then the interest will be paid into it on the scheduled date, and will need to be withdrawn or transferred elsewhere manually.

slinger2

Very easy (assuming you've got online banking). Wait until the old one matures, the interest will appear and you can move it to the new account manually.

P1Fanatic

eskbanker said:

If the original ISA is still open then the interest will be paid into it on the scheduled date, and will need to be withdrawn or transferred elsewhere manually.

That was my fear. I dont recall seeing an option of “transfer full balance & close” but now not sure. Guess I will just wait and see what happens.

P1Fanatic

slinger2 said:

Very easy (assuming you've got online banking). Wait until the old one matures, the interest will appear and you can move it to the new account manually.

We do have online but my concern was that all funding / transfers are done during opening as its Fixed 1yr. Nationwide online never seems to show an option to close an old account / zero balance account so would have to get my Dad to pop in his local branch and get it closed off. But for now I will wait and see what happens in May and hope a transfer is possible.

bizzie

If you select/click on the account you want to close -  in the top left corner a menu appears with "Other Account Services" being an option.
When selected it brings up another menu - across the screen -  and there should be an option to close account 


Clumsy explanation but hopefully when you see it on screen it makes sense

elkiedee

I opened two new Nationwide accounts in January, one a Triple Access ISA, to replace two one year savings accounts that were about to mature. 

They will pay the interest to his old account.

Money transferred from the old ISA to the new ISA shouldn't count towards the £20K allowance, but if he's added £20,000 of new money that isn't from tax free savings (any other old ISAs for example) then the allowance will be used up. However, the issue here seems to be that the new ISA is on a fixed rate and a lot of fixed rate accounts aren't open to add to as he goes along.

If this is a fixed rate ISA and he hasn't used this year's allowance by adding £20K of new money, Nationwide's ISAs are portfolio ISAs. So if there is still an allowance available to use for 2025/26, he could open a variable rate ISA as well, and move the interest into this.