Noob ISA Question

[Scrubs]

Might be a daft question, but just checking.

I took out my first ever ISA this time last year with Shawbrook, fixed rate for 1 year, and stuck 20k in it.

I now have a message form them asking what I want to do when it matures in a few days. Account now has just over 1K interest added on it. So call it 21K.

Can i now transfer/reinvest that full 21K into a new fixed ISA with them? Reason I am a tad confused is that it would be over the 20K limit, or does the earned interest not count towards the 20k limit?

Cheers for any advice...

[clockworks]

AFAIK, if you transfer an existing ISA to a new one, it doesn't count as part of your annual allowance.
If you withdraw the cash, and put it into a new ISA, it counts against your annual allowance.

So, do a direct transfer to a new ISA and it will be fine. You can the add up to £20k of new cash this year.

[mikef]

Scrubs said:

Can i now transfer/reinvest that full 21K into a new fixed ISA with them?

You can transfer funds currently in an existing ISA into a new ISA with any provider, AFAIK

[Rough101]

Yes, just do a transfer to the new ISA, this isn’t a normal bank transfer, it’s usually an online form and the two banks need to talk to one another to sort it, you’re next £20k can then be added.

[steveo3002]

21k transfer is fine

taking it out into a current account then wanting to re deposit 21k into a new isa isnt okay

[Scrubs]

Cheers for the replies.

Have told them to transfer the full lot into another one of their fixed 1 year ISA's which is at 4.25%, I am happy enough with that rate.

Actually never realised I can now add in another 20K on top of that to get tax free interest on 41K for the year, so will probably do that!

[droopsnoot]

Yes, the £20k limit is "new money", not money that's already in an ISA, nor interest earned in that ISA.

There's also the "flexible ISA", where you can withdraw money and put it back in, as long as you do it in the same tax year. Not all ISAs are flexible.

[ferret50]

Before you stuff £41k at 4,25% have a look at this place.....

[e-mail]

Structured products are not for everyone, but can provide both capital gains or income.

[mikeiow]

ferret50 said:

Before you stuff £41k at 4,25% have a look at this place.....

[e-mail]

Structured products are not for everyone, but can provide both capital gains or income.

That’s an email address…..I can see the website: what particular products are you suggesting?
The site has a big list.