Help with recent new rules on cash ISAs please

sparkiemalarkie

Hello, I want to take advantage of the Santander 1yr fixed rate cash ISA @4.5% with the £50 gift card for transferring from a different provider.
.
I only want to transfer £10,000 across and know that the original account needs to be closed via the transfer process.

I have a few flexible ISAs with Virgin Money, but most have much more than £10,000 in
One, however has £2,800

I have not used this years allowance yet

Can I put £7,200 from 2026-27 allowance into the small cash ISA to make £10,000 and then use this account to transfer to Santander?

Can I then put the remaining £12,800 in a cash ISA with a completely different provider?

(I have requested an internal partial transfer from a large account in Virgin to a new ISA within Virgin, but realise that this could take ages and the promotion at Santander could finish)

Thanks - I had ISA's all figured out until the recent rule change

sx

eskbanker

Yes, if you use £7,200 of your 2026/27 allowance to pay into a VM ISA, then, regardless of where it's later transferred to, you still have £12,800 of your current year allowance to do with as you see fit, with any provider.

sparkiemalarkie

https://forums.moneysavingexpert.com/discussion/comment/81960036#Comment_81960036

Thank you eskbanker - I thought I could but it just feels so naughty. We have had so many years of being told that the current years ISA subscription MUST stay together, that I feel anxious doing something else!

I will crack on with it then
sx

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81960064#Comment_81960064

As you say, the old rule was fairly longstanding, but this is already the third tax year of the relaxed rules!

sparkiemalarkie

Ok, I have another question about new money in ISAs
I have put £20,000 of 2026-27 subscription in a Coventry flexible ISA -
Now want to invest some of this years ISA allowance into a S&S ISA. Can I withdraw the £10,000 that I want to move and simply put it into the S&S ISA as cash?

tia

sx

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81997548#Comment_81997548

In a word, yes.

sparkiemalarkie

eskbanker, thank you so much. I simply can't get my head around these new rules.
I really appreciate your help

sx

fuzzzzy

https://forums.moneysavingexpert.com/discussion/comment/81997561#Comment_81997561

I know what you mean. This is the first year that I have put money in a flexible ISA with the intention of actually using it as an easy access account and withdrawing from it. In the past I might have used easy access ISAs but usually only until I was ready to transfer to a fix. I have never ever withdrawn money from an ISA account before. I have acquainted myself with the current rules but it still feels a bit weird to me.