Messy Isa's

barbuda

Hi,

I am trying to tidy up my Cash Isa's, ho hum…

Isa I; a 2 year fix from October 2023 that matured October 2025 then rolled over into a 1 year fix which matures in October 2026.

Isa 2; a 1year fix from April 11th 2025, which matures in April 11th 2026.

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Is it possible to transfer Isa 2 on maturity April 11th into a new 1 year fix cash isa with a new bank.

Then in October, when Isa 1 matures, transfer that into another 1 year fix with the new bank?

Just to keep things complicated ;-) After April 5th this year, could I also open a new 1 year fix Isa 3 with new funds with the new bank?

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As I see it, Isa 1 is from tax year 2023-2024, Isa 2 is from tax year 2025-2026 and Isa 3 is from tax year 2026- 2027. None of the isa's are flexible and all of them are using the max allowance.

It seems logical to me, but would appreciate any insights.

Cheers…

molerat

Yes to all 3 questions but some institutions though will limit the number of fixed accounts you hold with them.

refluxer

(Quoted post removed by Forum Team)

Just checking you realise that the change to the amount you can put into a cash ISA from April 2027 onwards won't have any effect on your existing ISAs ? It just lowers the amount of new subscriptions you can pay into a cash ISA from £20k to £12k from then onwards.

refluxer

https://forums.moneysavingexpert.com/discussion/6660567/messy-isa-039-s

When you say all of your ISAs are 'using the max allowance', what do you mean ? The ISA allowance is just a limit to how much you can pay into an ISA (or ISAs) in any one tax year and doesn't limit what you can hold within an ISA. If the terms allow it, you could pay subscriptions from different tax years into the same ISA if you wanted to (you can do this with easy access cash ISAs or even fixed rate ISAs from certain providers like Shawbrook or Barclays, who allow you to pay new subscriptions into them throughout the duration of the fixed rate period).

Here's an example of what you could do to really keep things simple - you could open a new cash ISA and transfer the fixed rate you have maturing on 11th April into it and also pay your 2026-27 ISA allowance into it as well, if the new subscription funds were available within the funding window (you can do this with any ISA provider who accepts transfers-in). You'd then only have two different ISAs going in total, rather than three.

While staying with the same ISA provider for all your ISAs might be a bit more convenient, the best-paying ISAs vary from week to week so limiting yourself to just the one provider may mean you don't get the best return. While you're obviously going to need more than one online banking log-in when using multiple providers, you're not going to be logging in often with something like a fixed rate cash ISA once it's up and running so the extra hassle/admin is pretty minimal.

barbuda

Hi Refluxer,

Thanks for the info, when I say full allowance it means that every tax year I try to switch money around so that I can use the full £20k cash isa allowance.

I am of a certain age 🙄 so it looks as though I will be able to keep the £20k allowance after April 2027…

In my stocks & shares Isa, I use moneymarket funds to park uninvested money, but the signs are that from April 2027 the interest gained will be taxed even though it is in an Isa.

So I would be looking to have the option to have tax free cash isas available to possibly switch part of my s&s isa into. Never done it before, but it seems to be within the rules.

Cheers

masonic

We don't yet know how things are going to be handled in practice, but the same exception that allows you to have a larger cash ISA allowance could allow you to hold cash-like products in the S&S ISA without penalty. You have until the end of the next tax year to shift money into a cash ISA if you need to, but I suspect you won't need to. We will know more when the results of the consultation come out later this year.

refluxer

https://forums.moneysavingexpert.com/discussion/comment/81931848#Comment_81931848

OK, cool. Just be aware that transferring funds from a Stocks and Shares ISA to a Cash ISA will only be possible after 6th April 2027 if you're over 65.

barbuda

Thanks for all the replies, I can confirm that unfortunately I am a bit of a coffin dodger….>65 🙄

But fortunately that would enable me to make the transfer, deep joy.