ISA reinvestment

Pipsdad

I put £20k in an ISA in 2024 which has matured and also another £20k in 2025 both are in 1 year fixed interest rate ISA's, the 2024 one has now matured and reverted to 1.15% which is clearly not good. Can I reinvest this money as its an existing ISA and tax free or will it be classed as next years money. Little frustrating as all I hear is if you invested in ISA's over a long period you would make lots in interest but that doesn't seem to be the case.

I don't seem to be able to get an answer on this so hopefully one will be forthcoming, thanks in advance

Isthisforreal99

Transfer to a new ISA provider with a better rate but do not withdraw the money to reinvest.

eskbanker

Yes, you can transfer the matured money into a new ISA without it counting towards the current year's annual allowance - just open your preferred account (ensuring it accepts transfers in) and initiate the transfer process with your new provider.

flaneurs_lobster

Does the provider of your matured ISA have any current offers for a new ISA that would be attractive?

Would save you having to go through the Id checks that would be needed for a new provider.

Albermarle

Pipsdad said:

I put £20k in an ISA in 2024 which has matured and also another £20k in 2025 both are in 1 year fixed interest rate ISA's, the 2024 one has now matured and reverted to 1.15% which is clearly not good. Can I reinvest this money as its an existing ISA and tax free or will it be classed as next years money. Little frustrating as all I hear is if you invested in ISA's over a long period you would make lots in interest but that doesn't seem to be the case.

I don't seem to be able to get an answer on this so hopefully one will be forthcoming, thanks in advance

If you read through the forum, you will soon see the answer, as similar questions are asked ( and answered ) regularly .

saajan_12

Pipsdad said:

I put £20k in an ISA in 2024 which has matured and also another £20k in 2025 both are in 1 year fixed interest rate ISA's, the 2024 one has now matured and reverted to 1.15% which is clearly not good. Can I reinvest this money as its an existing ISA and tax free or will it be classed as next years money. Little frustrating as all I hear is if you invested in ISA's over a long period you would make lots in interest but that doesn't seem to be the case.

I don't seem to be able to get an answer on this so hopefully one will be forthcoming, thanks in advance

You can either
* start a new fix with the same provider OR
* open an account with a new provider and then ask them to transfer the money from xyz old account. 
Don't transfer yourself as that's the only way it will count as new money. 

Either way, you're essentially keeping the 20k + any interest earned in the ISA wrapper, and getting compound growth.