Question re moving maturing ISA funds and adding additional amount

Bee_Butterfly

Hello all, apologies I have looked through the forum Q & A and still unsure as to the answer to my question and hoping somebody can help please.  I have 20k in a one year fixed rate cash ISA with Secure Trust that matures mid August 2025.  I am going to transfer it to a new provider as Secure Trust are only offering new ISA's for 3 or 5 years and I don't want to commit to that.  I have found another provider that I wish to go with and will be opening an account and arranging a transfer in with them so I don't lose the tax free status on the interest earned.  I also have another £20k I wish to put in in an ISA and utilise the 25/26 tax free allowance.   My question is - when I open the new ISA account and transfer my original £20k using the new providers transfer service can I then add my additional new £20k to the same ISA account, thus meaning my savings are in one place and I will not pay tax on any interest earned as it spans 2 x tax years?  Or do I need to open 2 x new ISA accounts with different providers?  Thanks so much in advance for any advice.    

slinger2

You can, in theory, do either. At the end of the day Cash ISAs are just savings accounts with a few extra rules. So you can add to an existing one or open a new one. However, everything depends on the terms and conditions of the accounts.

Ch1ll1Phlakes

Bee_Butterfly said:

My question is - when I open the new ISA account and transfer my original £20k using the new providers transfer service can I then add my additional new £20k to the same ISA account, thus meaning my savings are in one place and I will not pay tax on any interest earned as it spans 2 x tax years? 

You can certainly add the 20k into the same ISA along with your transferred ISA funds. Just check your new provider allows it - some are very particular on whether the funds in the ISA are the current tax-year or previous. 

I've done this in both of the previous tax-years. Just remember as long as previous tax-year funds stay in the ISA wrapper they don't affect this tax-years allowance. 

If you let us know the provider or account you are looking to use we can check if the specific account allows this.

Bee_Butterfly said:

Or do I need to open 2 x new ISA accounts with different providers?  Thanks so much in advance for any advice.    

The ISA rules currently allow you to open multiple ISA with the same provider. Note: this rule change was optional and not all providers adopted this. However, if you wanted separate ISAs for new and old ISA funds you can do so and possible with the same provider.

Bee_Butterfly

Thank you for replying - I am looking at a fixed rate cash ISA with Close Savings. 

badger09

Bee_Butterfly said:

Hello all, apologies I have looked through the forum Q & A and still unsure as to the answer to my question and hoping somebody can help please.  I have 20k in a one year fixed rate cash ISA with Secure Trust that matures mid August 2025.  I am going to transfer it to a new provider as Secure Trust are only offering new ISA's for 3 or 5 years and I don't want to commit to that.  I have found another provider that I wish to go with and will be opening an account and arranging a transfer in with them so I don't lose the tax free status on the interest earned.  I also have another £20k I wish to put in in an ISA and utilise the 25/26 tax free allowance.   My question is - when I open the new ISA account and transfer my original £20k using the new providers transfer service can I then add my additional new £20k to the same ISA account, thus meaning my savings are in one place and I will not pay tax on any interest earned as it spans 2 x tax years?  Or do I need to open 2 x new ISA accounts with different providers?  Thanks so much in advance for any advice.    

Yes you can add this year’s ISA allowance to the same ISA account if you wish, or open a new one for this year’s £20k. 

If your new ISA is a fixed rate fixed term product there is usually a fairly short period during which you can add to it after opening.