Help with ISA

petjoke

I have 3 isa accounts with 20k balances in each. I have taken them out each year for the last 3 years. My questions are:
1. Can I move 1 or more of the isa's for a better rate at any time?
2. Next tax year if I wish to open an additional 20k isa. What are my options  with the other 3 isa's or do I need to leave them with the same company?
Thank you.

Ayr_Rage

You can transfer old ISA money with impunity, so answer 1 is yes, move one or all and they can even be combined in the new ISA if that provider accepts multiple transfers in and you are within the sometimes limited period for transfers after opening.

One proviso is that fixed term ISAs may be subject to loss of interest if they don't run the full term.

You'll need to carefully check the terms of each ISA.

Also TRANSFER, don't ever let the funds go outside of an ISA.

Next year pick the best place for your £20,000, whatever you have done with the others is irrelevant and they can be moved again if you wish.

petjoke

Thank you for your reply. They are all instant access isa's. Just to clarify:
Can the combined isa transfers exceed £20k?

Ayr_Rage

petjoke said:

Thank you for your reply. They are all instant access isa's. Just to clarify:
Can the combined isa transfers exceed £20k?

Yes, subject to any terms of the new ISA.

Our government hasn't, so far, limited the amount you may have in any ISA.

Albermarle

petjoke said:

I have 3 isa accounts with 20k balances in each. I have taken them out each year for the last 3 years. My questions are:
1. Can I move 1 or more of the isa's for a better rate at any time?
2. Next tax year if I wish to open an additional 20k isa. What are my options  with the other 3 isa's or do I need to leave them with the same company?
Thank you.

It would be an idea to read through the forum as a good way to get up to speed about ISA rules.

Yorkie1

The £20K limit is an annual limit on new funds being put into an ISA.

It's not a limit on how much your total balance, over time, can be. But as others have said, the terms and conditions from a particular provider may state a maximum balance e.g. £250K.

Bear in mind that, at present, your cash funds are protected up to £85K for each financial institution (there is almost certainty that this will rise to £110K in the next month or so, but this has not yet been formally announced). Edit - announced to rise to £120K from December

So, from your figures, you have £60K plus interest in your existing ISAs. There is nothing to stop you applying to move them into fewer or one ISA. Always open the new ISA, and in the application process, indicate that the funds are coming from one or more other ISAs. This means that the new provider will transfer the balances from the old provider, and the tax-free wrapper remains in place. DO NOT withdraw the cash from your ISAs yourself, as that will lose them the wrapper.