Quick question about cash ISAs

ranciduk

hello

my mother already has two cash isa with Paragon, totalling just under 20k combined between the two

they were both funded around April/June 2025 and no more has been added to them since

she wants to know if she is allowed to open another cash isa , this time with a different bank, and fund it with another 20k

she is nearly 80 and doesn't understand how they work (like me!)

many thanks for any help 👍

GrubbyGirl_2

You can open more than one cash ISA, in fact as many as you want, but you can only put £20k per financial year into an ISA, but this can be split across different providers. Having a read through this forum would be helpful

Glad

yes she is allowed to open and fund a new ISA, and also to move the money she currently has in ISA accounts when they mature. It's difficult to advise on those without knowing what type they are.

Please read through one of Martin's articles from the main MSE site, here

ISA allowance: ISA limits & rules - MoneySavingExpert

Bigwheels1111

Every year / 6th April a fresh £20,000 can be put into an ISA, New or existing ISA if allowed.

As she is over retirement age she will keep the 20k cash limit next year.

Has she or you check the best rates for ISA'S.

If she does not need the money, a 3 or 5 year ISA could be a good idea, access is possible but at a cost of 180 days interest.

5Y @ 4.55%

I would go with 4.53% with Tandem Bank, as I have 4 accounts with them and they are great, answer calls quickly and sole any issues fast.

5Y ISA'S charge 365 days interest for early access.

Look here.

Change the year ie 1,2,3,4,5 then select rate in the drop down box.

Plus you can move older ISA account into it.

https://moneyfactscompare.co.uk/isa/5-year-fixed-rate-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

ranciduk

Thanks a lot guys 👋

I’ll tell her as she hasn’t put anything at all into a cash isa this year, she is allowed to put a full £20k into a brand new cash isa

cheers

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81987604#Comment_81987604

Plus read through the actual ISA forum .

ISAs & tax-free savings — MoneySavingExpert Forum

trickydicky14

https://forums.moneysavingexpert.com/discussion/comment/81987612#Comment_81987612

Not sure I would be taking out a 5 year term if I was in my 80's but that's my view.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81987661#Comment_81987661

she certainly can do that.

She could also spread her new £20k over several ISAs if she so desires.

Plus, if she chooses an ISA which allows transfers-in, and which pays a decent rate for the transferred-in amount, she can ask her new provider to transfer one or both or her old ISAs into the new one. Though she should not request a transfer before maturity if she has a fixed term ISA.

As said, she / you should read the MSE ISA guide.

Glad

https://forums.moneysavingexpert.com/discussion/comment/81987711#Comment_81987711

As someone had already mentioned the forum, my post was just pointing to the main site as additional reading 😊
Part of my role as an ambassador is to point people to the articles on there ☺️

Thank you for your link though

LHW99

https://forums.moneysavingexpert.com/discussion/comment/81987874#Comment_81987874

If she doesn't need the money imminently, no reason not to, if the interest rate is good. ISA moneys are available to executors (for distribution), even if in a fixed term account.