How will my cash ISA work?

PoGee

I put £4k into a cash isa last tax year at around 4.2% interest. It was with the bank that I bank with already. This tax year, I transferred this amount + an additional £9k into their new fixed term (1 year) isa. Does this mean I've used £13168 of my £20k allowance? Should I have perhaps opened an isa with a different bank? If I'd kept the £4168 where it was, it would have then earned their base rate of 1.2% - would that future earned interest then be taxed?

masonic

Did you transfer the cash, or did you request the provider transfer it to preserve ISA status?

PoGee

I think there was an option that said - 'invest in another isa' so clicked that tab. On rechecking my online account, it says I have an additional £11k allowance so I understand it now.

LHW99

As long as it's the "new" provider that does the transfer (in this case new, because it's a different ISA account) then money transferred from earlier financial years doesn't affect your £20k allowance for 2025-26.

Albermarle

There is a sub forum for ISA questions,
If you read through it you should become better informed about all the rules.
ISAs & tax-free savings — MoneySavingExpert Forum