Open new cash isa and transfer matured cash isa into same

davee64_2

Have a Shawbrook cash isa maturing April. Looking at opening new cash isa of £20k with Castle Trust Bank @ 4.2% fixed 1 year.

Can I also transfer Shawbrook into this to maximise interest?

refluxer

It's usually possible to fund a fixed rate cash ISA in those two different ways, as long as the provider accepts transfers-in.

Just keep an eye on funding windows and also whether the provider only allows transfer-in requests at the time of account opening.

LeadFarmer

Can an existing ISA be transferred at any time without affecting the current years allowance?

So an ISA opened in say 2023, will that always be seen as a 2023 ISA that be transferred in the new tax year without it affecting the new tax year allowance?

QQQQQQQQ_Y

https://forums.moneysavingexpert.com/discussion/comment/81936181#Comment_81936181

Yes, precisely that, but you must transfer the money via the new provider i.e. when you make an application on their website/form you must enter the details of the existing ISA and the existing provider, and the new provider will arrange the transfer by contacting the old provider.

If you withdraw the money from the existing ISA and then add it to a new ISA you lose the existing ISA allowance and the money contributed to the new ISA counts as part of this year's ISA - so NEVER do this!

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81936181#Comment_81936181

It's not when the ISA was opened that matters when considering allowances, it's when (and by how much) it was funded. New money subscribed in any tax year is always contributing to that year's allowance.

davee64_2

https://forums.moneysavingexpert.com/discussion/comment/81936144#Comment_81936144

Thanks for this. Would it be easier if I just open a new ISA at £20k, then transfer the matured one over to same provider?

At least then I will still get good rates with mote flexibility.

refluxer

https://forums.moneysavingexpert.com/discussion/comment/81936451#Comment_81936451

Doing so would obviously give you one ISA rather than two if you want to keep things simple in that respect, but you would need to request the transfer-in within the timeframe allowed by that particular provider. When in April does your Shawbrook ISA mature ?

And when you say "At least then I will still get good rates with mote flexibility", what do you mean ? You'll get more flexibility by opening two different ISAs, not combining them into one.

davee64_2

https://forums.moneysavingexpert.com/discussion/comment/81937184#Comment_81937184

MMatures 14th April. After contemplating this I think I'll go with 2 separate ISA's.

Just thought combining would increase the interest it would earn.

Thanks for your suggestions and time, much appreciated.

refluxer

No, combining them won't change the interest rate. You sometimes get easy access accounts that have tiered rates of interest, but I don't think you tend to get this with fixed rate accounts.

Keeping them separate would allow you to spread your bets (interest rates-wise) and stagger different fixes, if you wanted (eg. take out both a 1 and 2 year fixed rate ISA).

Isarulesaretoocomplex

A little off topic but im looking at a transfer of my cynergy fixed rate cash isa into vanquis..my cynergy isa matures 15th April and looking at the vanquis site it has a box which you tick to allocate on maturity ...question is do I have select my maturity option with cynergy or will it impact the transfer if it goes into another fix ..or should I select the transfer into the flexible 1% option..