Adding to an ISA that has a 12 month maturity?

vigman

My wife started a Tesco ISA last December (2025). The bonus interest finishes this December. She wants to invest this year’s allowance and Tesco are still offering 4.2% with a 12 month’s bonus rate.
Does she add this amount to the current Tesco ISA? Does she start a second Tesco ISA to get the full 12 month bonus interest?

Any advice welcomed. Thanks

Isthisforreal99

Most fixed rate ISA's have a limited funding window so it may not be possible to add to it, and why would you want to if it matures in 3 months.

Why Tesco for this years allowance, there are better rates than 4.2% out there.

flaneurs_lobster

Couple of questions, is the existing Tesco ISA the Instant Access Cash ISA?

Has your wife funded this ISA during this tax year?

vigman

https://forums.moneysavingexpert.com/discussion/comment/82146872#Comment_82146872

Yes, it’s the instant access ISA and no my wife hasn’t funded this year.

vigman

https://forums.moneysavingexpert.com/discussion/comment/82146859#Comment_82146859

Apologies for the omission, it is the instant access ISA she currently has.

darkcloudi

If its a Tesco Instant ISA just call them up and they will just update the existing account. In my scenario it was paying a little less interest rate so phone up and asked for the new 4.2% rate, and they updated the account and received the new rate the next day (for 12 months). (I cant see it being any difference for you regardless of rate, as its a instant saver ISA)

You may get someone who doesn't know what they doing as my wife when she called about the same thing, they created a new ISA account with the 4.2% rate and was going to transfer the old ISA balance to the new one, this wasn't great as it meant new sort code and account number and then setting this up from my current account. After, telling the staff several times and asking if they can check with the colleagues whether they are doing it correctly, they then closed the new ISA account and updated the old ISA account to receive the 4.2%

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82146881#Comment_82146881

Well, personally I'd be looking to transfer existing Tesco ISA and add this years contribution to somewhere like Trading 212 who are paying 4.81% and still easy access. Fixed rates are higher elsewhere as well.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82146878#Comment_82146878

There's no restriction that I can see on opening a second instant access ISA at Tesco, that would be the way to secure the bonus for 12 months.

You could then (if you wish) transfer the existing ISA balance to the new ISA.

There are better rates to be had, Tesco offer 4.4% in their fixed ISA for a year, Better rates still are available outwith Tesco.

EDIT : but I note @darkcloudi's post above saying you may simply be able to 'reset' the existing ISA.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82146895#Comment_82146895

Well personally I'd be avoiding Trading 212 because their ISA is a serious pain to transfer away to anywhere else (see posts here ad infinitum).

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82146902#Comment_82146902

After reading the posts on here about T212 ; Plum ; Chip etc. I stick with more conventional savings providers who tend not to have any unusual/unexpected T's & C's, and are user friendly to deal with. ( I do not mean big banks in general but smaller providers like Aldermore, Shawbrook and similar) Maybe it costs me 0.25% for 6 months, but is a lot less hassle ( no hassle in fact).