Kent Reliance Changes - should I open new ISA

Ljc80_2

I have had a KR Fixed rate ISA for few years and have always regularly deposited into it every month or so.

I believe I will no longer be able to do this so will just have to leave it as it is until it matures next year.

Are there other ISAs that allow regular deposits? Or should I look at a normal savings account instead? I’ve always worried about paying tax on one of those (although I’m not sure how that tax is actually taken?).

Once the current ISA matures can I then transfer in anything I had in a regular savings account before it moves to another fixed rate period?

my other thinking is I’ll just start overpaying mortgage rather than saving!

mebu60

It's highly unlikely you have been depositing monthly into a fixed rate ISA. With a fixed rate ISA there is usually a funding window of 2 - 4 weeks or so into which you can make one or many deposits up to your available ISA allowance before the window closes. Then it's locked down until maturity. Early redemption tends to come with a heavy penalty.

Easy access cash ISAs will allow you to pay in deposits at any time. Subject to your ISA allowance limits for that tax year which is for you to manage.

Area88

Barclays allow deposits into their flexible fixed ISAs during the entire duration of the ISA. Kent Reliance was also the same but a change in online system had muddied things.

ToastLady

Shawbrook is another who did let you add further deposits, but not further transfers, within the fixed term. Best to check current t's and c's though.