Maturing Fixed Rate ISA

Walkinthewoods

I have a fixed rate ISA maturing in July. I am thinking of putting the money into a Variable Cash ISA which pays a bonus rate on top of the variable rate.The new account allows transfers in at a lower rate of interest. I don't intend to add any extra money into the account other than the existing maturing ISA. Should I withdraw the cash at maturity and pay it into the new account as new money in order to get the bonus rate which I wouldn't get if I transferred it?

Middle_of_the_Road

Walkinthewoods said:

I have a fixed rate ISA maturing in July. I am thinking of putting the money into a Variable Cash ISA which pays a bonus rate on top of the variable rate.The new account allows transfers in at a lower rate of interest. I don't intend to add any extra money into the account other than the existing maturing ISA. Should I withdraw the cash at maturity and pay it into the new account as new money in order to get the bonus rate which I wouldn't get if I transferred it?

You could do that, as long as it's not more than £20k.
I presume you're looking at Trading 212 and hopefully not Plum..

clairec666

Nothing to stop you withdrawing up to £20000 and depositing it in a new ISA, however it would use up this year's allowance so keep this in mind if you plan on putting more money into an ISA in this tax year.

Walkinthewoods

I also have another maturing ISA in September but intend to transfer it at the maturity date with another provider or let it roll over with the existing provider.

Yorkie1

If you are likely to want to invest any new money this year, particularly in anticipation of a drop in maximum investment limits into Cash ISAs next tax year, then best to transfer rather than withdraw and reinvest.