ISA Transfer

glens95

Apologies in advance if this is a dumb question. I have a fixed rate cash ISA which is due to mature in Nov. this year. I was wondering if I were to open a new fixed term cash ISA, currently at 4.2% for 5 years, could I transfer my original ISA into the 5 year ISA in Nov? If so, what would the interest rate be for the ISA that I transferred in? Any advice would be gratefully received. 

MeteredOut

Technically, there's nothing stopping you from doing this, but it depends on the T&Cs of the new ISA. Some have limited funding windows, and that is more common with fixed ISAs.

glens95

Thanks MeteredOut. Would I be right in thinking, that I should check that this option is available to me, prior to opening the new ISA? If it were possible, would I get the same interest rate on the ISA that I would transfer in?

MeteredOut

glens95 said:

Thanks MeteredOut. Would I be right in thinking, that I should check that this option is available to me, prior to opening the new ISA? If it were possible, would I get the same interest rate on the ISA that I would transfer in?

Yes, you should always check the T&Cs for a product you're taking out to ensure it is suitable for you.

If the T&Cs allow a funding window through to November, and it is a fixed 4.2% for 5 years, then I can't see why that wouldn't fit your needs.

Also check the 4.2% covers transfers and not just new funds.

But you could open it, and if its not suitable, just not fund it. Although it might have a minimum funding (eg, £1000 within 30 days) or it'll be closed. And guess what would tell you that? The T&Cs

If you share the ISA you're looking at, others might be able to help.

glens95

Thank-you so much for the advice. To be honest, I was afraid I'd maybe misunderstood the process and didn't want to waste my time looking at T&C's if it wasn't a viable option.  Appreciate your assistance 

slinger2

Since we don't know which fixed-rate ISA you're thinking of opening it's impossible for us to comment sensibly. Most fixed-rate ISAs won't let you pay in after being open for so long, but some do.

Sallyforth

I’m no expert but agree check all the small print t&c’s and make a phone call if you’re unsure. I opened a 2 year fixed ISA with Kent Reliance in February at a pretty decent interest rate and was delighted to discover I can pay into that for this tax year and next too. That’s allowed me to add £10k and when a previous year’s fixed ISA matures in November I can add a further £10k.

It really was only by chance I discovered this so worth shopping around.

PeskyBlunder

You could transfer the existing ISA into the new one when you open it but at the expense of paying a penalty. It all depends on what rate you are getting at the moment and what you think will be the rate you could get in November. Are you planning to put new money in as well or is it just to transfer to?