Combining ISA's Advice

NebulaNova

Hi, I have two ISA's maxed out, both at 4.28%. Different companies from the 2025/2026 and 2026/2027 current tax year. Both cash ISA's but only one is flexible.

I have a few questions I wanted to ask please.

• Is there any benefit to having them separate?
  
• If I combine them into one and then in the future if I wanted to split them into two ISA's again, how would I do that as the two tax year funds/interest are now combined so I wouldn't know how much to transfer into two new ISA's?
  
• Are there any decent companies that would accept both transfers that can be dealt with all online for a higher rate than 4.28%? I have already used T212 and currently with Moneybox. Would prefer a cash ISA that is flexible and that pays interest monthly, but I am flexible on that.

If I do merge them into one, am I able to withdraw the interest each month without it having any effect on my £20k limit for that year, or any penalties?

Thank you

friolento

There is not really a maxed out ISA. You can have millions in an ISA. The limits only apply to the amounts of new money you can deposit in each tax year, currently £20k (of which probably max £12k into cash ISAs from next tax year).

You can certainly combine 2 or more ISAs into one. You just have to find an ISA which allows transfers in; then request the ISA provider to make the transfers. It doesn’t matter much whether you transfer current or previous year’s money, though all current year’s must be transferred as a whole. Your current ISA provider knows when you deposited how much, and will pass this information to the new provider

A pitfall to watch out for is that interest rates for transferred money might be lower than the rate fir new deposits.

If you might want to split your combined ISA again, you need to choose an ISA which will allow partial transfers out, and your new ISA must also allow partial transfers in.

Whether you can withdraw interest or capital depends on the type of ISA you choose. Fixed term ISA usually charge a penalty for withdrawals before maturity. Easy access ones you can withdraw from to your heart’s content. It’s all detailed in the T&Cs. Withdrawals do not impact your annual allowance (except perhaps if you want to make use of flexible ISAs but you should stick to basics until you are familiar with the basics).

Whether you should have one or several ISAs, only you can tell.

You find all the current ISA rates on moneyfacts https://moneyfactscompare.co.uk/isa/

NebulaNova

https://forums.moneysavingexpert.com/discussion/comment/82078474#Comment_82078474

Thanks, it sounds like I may be limited if I want to do partial transfers out in the future if I combine them.

kipsterno1

Some ISA transfers require that you transfer the full current ISA. In this case it might be beneficial to have separate ISAs so you don't have to put everything in the same place.

ToastLady

You could always put your non flexible one into a fixed for a better rate for one or more years, unless you need access of course within the term. Top rate at the moment for a 1 yr fix is 4.70% with AlRayan through Meteor, next is 4.65% at Vida. I've been keeping an eye on the rates as have a fixed maturing next month, but a bit early yet to apply for anything.

NebulaNova

https://forums.moneysavingexpert.com/discussion/comment/82079093#Comment_82079093

Thanks, is Vida a reliable company? Never heard of them.

ToastLady

https://forums.moneysavingexpert.com/discussion/comment/82079172#Comment_82079172

Yes, I've used Vida for a few years now for various accounts including ISA. No problems whatsoever.