Newbie to ISA, maturity question

sherbie28

My dad has an ISA with Lloyds which is about to mature (2nd April i think). I know it will transfer into a basic isa after the maturity date. I'm hoping to transfer it all into another fixed rate ISA. If I let it roll into the new lower rate Lloyds account can I transfer out of any time? Also if I find a new after 6th April that accepts transfers in, I can transfer the old ISA money and also add a new amount for the new tax year? Finally, do I need to close the old ISAs or do they automatically close if the balance is £0.

eskbanker

Assuming the post-maturity account is an easy access one then yes, it can be transferred at any time, and, provided the transfer is enacted by using the new provider's ISA transfer process, doesn't affect the annual contribution allowance so that would still be available for use.

ISAs will generally close when fully transferred, but it doesn't really matter either way, in that having an old empty one doesn't actually impact anything…

JGB1955

As long as the receiving ISA had a current 'window of funding' of at least 21 days you can open a new one tomorrow, transfer the current fixed funds upon maturity on 2 April (you need to put that in place in advance) and add another £20K on 6 April.

elkiedee

Are you doing this on behalf of your dad? I ask because you mention that he has an ISA and then you talk about paying money into it.

sarah_25

Thank you for the replies. It's his money, he's just rubbish with fat fingers and not tech savvy so he leaves it up to me to sort.

sarah_25

If you transfer in does that transfer in count as the 26/27 allowance? I assumed you could transfer in with old money and also add new money (another 20k) if you did after the 5th April?

Barkin

https://forums.moneysavingexpert.com/discussion/comment/81928518#Comment_81928518

You assume correctly.

20k is the limit of new money per financial year. Transfers of money from previous years doesn't count towards that limit.