ISAs

[5thCommandment]

I'm sure this has been covered before but economic context moves constantly. I've got bonds maturing in Jan to move into ISAs april.

My current ISA runs until March 2025 on 4.2%.
I'm minded to open a new ISA at 5% ish to put next years 20k into.

If I do that:

1. We have no intent on spending it. Should I do 1,2,3, or 5yrs? I'm thinking 2yrs fixed to keep a high rate and then lock again? Or would you take the highest 1yr fix every year regardless?

1. Can I put 3 iSAs into one via transfer-in? I've accused drips and drabs on various terms/rates and it's just annoying now...

Thanks.

If you open a new ISA for next year's money check that it accepts transfers in - and if it does then I believe you apply through that ISA, to transfer money from elsewhere.

I'm not sure what to suggest about length of fix; my suspicion is that if you want the money in cash investments 3 or even 5 years now, if you can get a good rate, may be worth it. But might you change your mind about your investing style sooner than that and feel ready to consider share based investing?

Yes, you can transfer more than one ISA into a single ISA.

But bear in mind the total amount and whether you might need to access some of it before the fixed term ends. Some fixed term ISAs allow partial withdrawals (subject to a loss of interest penalty) but some make you close the whole ISA (so obviously the loss of interest penalty will be more and you'll lose the ISA tax-free status on the portion you didn't need to access).

And it's good to have a few different ones, so you can stagger the maturity dates and help even out fluctuations in interest rates.

I'm minded to open a new ISA at 5% ish to put next years 20k into.

Do you mean you'll open it in April? See what the rates are closer to the time. As you already have one maturing in 2025, I'd go with 2 years or longer. At the moment rates for 1 or 2 years seem highest - I recently saw a 5 year fixed rate with a lower rate of interest than the shorter fixes.

@5thCommandment which company is doing 5 % pleaae

@ZeViteVitchofCwismas
Shawbrook 1-Year Fixed Rate ISA 5.01%
Post Office 1-Year Fixed Rate ISA 5%

Melton Mowbray 2-Year Fixed ISA 4.95%
TSB 3-Year Fixed Rate ISA 4.5%

https://savingschampion.co.uk/best-buys/personal/fixed-rate-cash-isas

@5thCommandment
I would wait until April to see what 'sweeteners' are on offer for opening a new ISA or transferring one in. These can make quite a difference to overall returns.