Basic ISA question

[MarshaMarshaMarsha]

I had £35k in savings. I have just moved £20k to a cash isa (one year fixed).

In april can I open another isa and move £10k from my savings into it?! Or do I just need to keep that in my savings account?!

Plan at end of next year is to then use the balance in any savings/ISAs and OH’s too to pay off our mortgage (will keep some back for emergency funds).

I’m a higher rate tax payer (£60k ish earnings) and making 8% pension contributions (matched by company) if that has any bearing on what I should do?!

Yes.

You might hit a limit on how much can be put into cash isa next financial year, as there was talk on limiting that to less than £20k.

But the limit is annual not total. So people who’ve been able to fill ISAs every year have significantly over £20k.

yes can put up to £20k a year into your ISA without paying tax on it. So in April you can put another £20k into the same account. As you're on a 1year fixed rate though I would look at moving all your funds to another ISA with a higher rate as they usually drop considerably once the fixed rate ends (you've reminded me that I need to move mine too!).

Thanks both, I thought that was the case but a couple of things I read made it seem like £20k was the max total you could put in ever, not just in one year so doubted myself!

I will put it in same account then rather than have various pots.

You can put £20k in before April.

You can put another £20K into an ISA every year after that, but from this April only £12K Pa can go into a cash ISA, the remainder must go into a S&S ISA (unless you’re over 62, IIRC).

Shop around every year (or more frequently if you have an easy access ISA) to be sure you’re on the best rate.

This isn't correct. This april you could put in another 20k. The drop to £12k for cash visas doesn't occur until April 2027

Oh right - thank you!