Maturing ISA

[SomeoneElse]

I've just received a letter from one of my banks saying that my fixed rate ISA, opened in 2023, is due to mature in July 24 and that it will be converted to a cash ISA (at less than half the fixed interest rate) or I can move it to another fixed rate ISA. The ISA has the full annual allowance from 2023 plus interest. If I move it to a fixed rate does that use up my 2024 maximum allowance or could I add another 20k to it?

[Urbandreamer]

If I move it to a fixed rate does that use up my 2024 maximum allowance or could I add another 20k to it?

The limit is on contributions. If you MOVE your ISA, you can contribute a further 20k. Either to the same ISA or a different one.
If you WITHDRAW the contents of your ISA then it would count as a contribution were you to add the contents to an ISA.

Always get your new provider to organize the transfer.

[monabri]

If I move it to a fixed rate does that use up my 2024 maximum allowance

No.

could I add another 20k to it?

Yes.


As Urbandreamer says, initiate the transfer via your next ISA provider and let them handle the transfer. Do NOT cash it in yourself.

[SomeoneElse]

Thanks, that's what I thought/hoped. I've already opened a new fixed rate ISA for 2024 with a different bank, so will arrange for the maturing ISA to be moved to a fixed rate within the same bank.