Discussion
I'm new to isa's, in August i opened a new one with full 20k into a 1 year fixed rate
in April id like to open another with a fresh 20k from savings , the blurb says i have 28 days to load it and can transfer existing isa's
so in April , apply for new one , send over 20k from savings ,the blurb suggest i can merge last years one , or do i need to wait until August when the 1 year fixed is up, then I'm well past the 28 days
in short are folk merging several years into one place or running multiple 20k here and there
in April id like to open another with a fresh 20k from savings , the blurb says i have 28 days to load it and can transfer existing isa's
so in April , apply for new one , send over 20k from savings ,the blurb suggest i can merge last years one , or do i need to wait until August when the 1 year fixed is up, then I'm well past the 28 days
in short are folk merging several years into one place or running multiple 20k here and there
You can obviously do either but you can only pay new money into one Cash ISA in a tax year (£20k allowance spread across Cash, S&S, Lifetime etc ISA's).
Assuming you are opening the 'new' one as a 1yr fixed again? You should be able to transfer the existing 1yr fix to the new one but i'd suspect you'd have to pay a penalty (30, 60, 90 days etc interest usually, but you'd have to check for that ISA) to get out of the current 1yr fix.
That's one of the benefits of a fixed ISA, you can get at the money for a penalty, with a standard multi year fixed non-ISA account you wouldne be able to do that usually.
Assuming you are opening the 'new' one as a 1yr fixed again? You should be able to transfer the existing 1yr fix to the new one but i'd suspect you'd have to pay a penalty (30, 60, 90 days etc interest usually, but you'd have to check for that ISA) to get out of the current 1yr fix.
That's one of the benefits of a fixed ISA, you can get at the money for a penalty, with a standard multi year fixed non-ISA account you wouldne be able to do that usually.
new one in april with a fresh 20k
dont want to loose, any 90 days /penalty (why would i? ) on the existing one that expires in aug 24 , so im stuck with having isa 1 aug-aug , and a new isa2 april-april ?
would have just been nice to lump it all together every year instead of having multiple ones , no big deal and like i say im new to isa
dont want to loose, any 90 days /penalty (why would i? ) on the existing one that expires in aug 24 , so im stuck with having isa 1 aug-aug , and a new isa2 april-april ?
would have just been nice to lump it all together every year instead of having multiple ones , no big deal and like i say im new to isa
Edited by steveo3002 on Saturday 16th December 11:35
The Leaper said:
If you keep "lumping" each year's ISA then in 4 years you'll be up against the FSCS limit of £85,000.
Yes and no.If it's, say, cash ISAs with one bank (or group of banks like Lloyds/Halifax) then yes, £85k is relevant.
If it's a stocks and shares ISA with broadly spread investments on a platform (Hargreaves Lansdown, Fidelity etc) then the £85k is much less relevant because your actual investments are generally not "in" the platform provider but "on" their platform. So if you're worried, just keep each investment under £85k.
(The above is over-simplified for ease of understanding. If concerned about the £85k make sure you check it out carefully, wherever you're putting your money.)
This is the situation with most fixes. You can start a new ISA in future after the fixed period is up on your existing one and transfer your existing ISA into it and fund it with your £20k at the same time.
I’ve accumulated a few year’s worth in a flexible cash ISA. I didn’t want to fix and the rate has been within about a percent of the best fixes throughout.
I suspect most people who are fixing just have multiple pots. That’s quite nice in itself because depending on when you start them and their durations you can have funds maturing on a regular-ish basis
I’ve accumulated a few year’s worth in a flexible cash ISA. I didn’t want to fix and the rate has been within about a percent of the best fixes throughout.
I suspect most people who are fixing just have multiple pots. That’s quite nice in itself because depending on when you start them and their durations you can have funds maturing on a regular-ish basis
Hustle_ said:
I suspect most people who are fixing just have multiple pots. That’s quite nice in itself because depending on when you start them and their durations you can have funds maturing on a regular-ish basis
That's what wife and I do with our ISAs. Differing regular maturing dates also prompts us to keep an eye on our investments and finances generally, which is no bad thing.R.
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