ISA - I've jumped the gun opening a new ISA - what are my options??

Just_A_Dad

As per the title,

I've messed up, misread an email and opened up a new ISA (and started funding it) before last years ISA matures - and will not be able to move it over (before new one closes) what are my option please.

I will help by filling in the blanks.

All of this is santandar - but also happy to go somewhere else if i can.

May 25 - have a cash ISA open it up with 2K and transfer over 13K from a halifax one. so it has 15K in. it closed for input on 29th May 2025.

At the same time I've opened a regular 5% saving account with Santander putting away £200 per month

Last month I get a letter called ' savings and cash ISA maturing letter, first line saying matures 6th May. excellent - however it now apears that was only for the savings account - not the CASH ISA which matures 1st June????

So I opened a new Santander 4.5% CASH ISA with £500 from a different savings pot. The idea was in May I would then move across the 15K plus interest into the new one I've opened before it closes… this now is not possible.

This morning I get my ISA maturing letter of June 1st saying it will transfer to a 0.9% ISA/savings account

What are my options please?

can I withdraw my 2026 £500 new ISA/close it and then reapply for a santandar one - or would i withdraw the £500 and then open a new ISA with another bank totally??

Or - do I withdraw my current 2025 ISA (lose 120 days of interest) to enable me to move it into the open 4.5% one before it closes on May 29th??

ISA's confuse me at the best of times - but I dont want to mess this one up.

Thanks in advance.

flaneurs_lobster

Couple of things.

Doesn't seem likely that a Cash ISA would mature into a non-ISA account, they usually mature to an easy access, poor interest rate ISA. Worth checking.

There is nothing stopping you opening a third ISA (with Santander or anyone else) closer to the maturity date of your 2025 ISA and then requesting that your 2025 be transferred ON MATURITY into ISA 3.

You should not close the 2025 ISA before maturity, the penalties are prohibitive.

The new 2026 ISA you have already opened with £500 - if you are within the cooling-off period (need to check what it is) then you can cancel and have your funds returned (with interest and no loss of ISA allowance). If you are outside the cancel-free period then I'd just leave it alone (you could choose to do this anyway), especially as rates are falling.

Note that all movements between ISAs should be by TRANSFER, by request of the ISA provider of the receiving account, not by the account holder doing manual movements, to preserve the tax-free status of all the funds.

Just_A_Dad

https://forums.moneysavingexpert.com/discussion/comment/81987152#Comment_81987152

Thanks for the above - I've edited - the 25/26 ISA to say that its going to mature to a 0.9% ISA account.

I will check the cooling off period on the account that has £500 in.

However - I thought you could only fund one cash ISA per tax year (meaning the one with £500 in) or have I got that wrong?

Many thanks - your help is greatly appreciated

flaneurs_lobster

The rules changed a couple of years ago, you can hold/fund as many Cash ISAs as you like, although some providers will only allow you one with themselves. Believe that Santander impose this rule, so my comment above is incorrect, your 3rd ISA would need to be with someone else (unless you cancel ISA 2).

Just_A_Dad

https://forums.moneysavingexpert.com/discussion/comment/81987179#Comment_81987179

ok thanks for that - I do see on the Santandar website that I can consolidate all CASH ISA's with them, so does this mean I could once the 15K one has matured - then consolidate it to the £500 one that has the 4.5% for this tax year?

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81987193#Comment_81987193

Assumed that the £500 ISA was a fixed rate product with a funding window that would be closed before your 2025 ISA matured so not available for transfer.

I don't know what Santander mean by "consolidate all cash ISAs with them", all your Santander ISAs? All your ISAs across all providers? Could just be marketing-speak for "choose us".

friolento

https://forums.moneysavingexpert.com/discussion/comment/81987193#Comment_81987193

I doubt you will be able to move anything into your current 4.5% ISA after June 1 as the deposit window will have closed by then.

At Santander, you should be able to "upgrade" your matured ISA into whatever is on offer on June 1. Currently, they are offering 4.25% AER ISAs. You could also ask a different provider to move your matured Santander ISA to a new ISA with them. Right now, are quite a few about which pay more than 4.25%. You could probably apply now, and ask for the transfer to wait for maturity. Don't request a trsnsfer before msturity, as the penalty will be harsh, and don't transfer your money yourself.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81987202#Comment_81987202

I don't know what Santander mean by "consolidate all cash ISAs with them", all your Santander ISAs? 

Before this newish rule came in about being able to open as many ISAs as you like, some providers got around the 'one cash ISA per year rule' by letting you hold multiple cash ISA's with them, but as far as HMRC were concerned you only had one cash ISA. I forget what the proper name description was, but Nationwide was one provider who did this. Maybe this is what Santander mean ( or maybe not).

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81987358#Comment_81987358

They used to be referred to as 'split ISAs', or 'portfolio ISAs', before they became largely obsolete following the 2024 regulatory changes…

Just_A_Dad

https://forums.moneysavingexpert.com/discussion/comment/81987209#Comment_81987209

Thank you - so after June 1st - all is not lost - and the money can be transferred (in part or full?) into the 4.25% offer they have. thank you

friolento

https://forums.moneysavingexpert.com/discussion/comment/81987423#Comment_81987423

Yes, you should be able to do this, and there would be no point leaving anything in a 0.9% ISA.

If for any reason Santander won't let you do what they call the upgrade, you simply ask another ISA provider to transfer your ISA to them.

You should set things in motion right away, so you don't have money lingering in the 09.% account for any longer than necessary. But as said, don't request any upgrade/transfer date before maturity date