The Lemon Fool

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?

SomeoneElse wrote: 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.

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

No.

SomeoneElse wrote:
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.

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.