Cash ISA at end of year

[LouisaMayAlcott]

I have never done this before so I’m hoping someone here has!

I have a cash isa and of course when it matures the interest rate will drop. I assume I need to transfer it to a new one to get a better interest rate for the new tax year? Do people do that every year to chase a better interest rate until you’ve run out of providers where you can open a new account? Do you have to close accounts as you transfer it elsewhere each year?

I keep researching rates for transfer cash isas (not S&S I’m too old to tie my money up for the next ten years) but I’m not sure if this is what everyone does or do you just leave it where it is with a lower interest rate?

Definitely keep moving it.

when do we need to move it in order to get thus years interest ? is it 5th april ?

Check your banking app. My bank had a simple link with a choice of cash ISA products, interest rate dependent on the fixed term. I could either move the capital sum, capital plus interest, or capital plus interest plus an additional sum. The bank will move the money over in a few days time when the existing product ends.

Several providers seem to be offering cash incentives to transfer an ISA to them. Try searching, or look on Money Saving Expert.
https://www.moneysavingexpert.com/savings/best-cash-isa/

Thank you!

my isa is currently with Plum, I’m not sure that they will offer a new one at a comparable rate again so I can’t just leave it (I’ve assumed it ends on 5th April, end of the tax year). My bank (HSBC) doesn’t do a good enough rate I’d be better transferring to one of the ones recommended by Martin Lewis. I just wondered if everyone does this every year, transferring it to a different provider. If that’s the norm!

Yes I move mine around regularly. I assumed it closes automatically when you transfer out of the old isa?

I think so (I'm far from an expert). ISAs are contracts that run for a fixed term, so you would be expected to take a new contract elsewhere if your current provider isn't interested in holding on to you with a good offer.

Whatever you do, find a product/provider that accepts transfers and apply to them to move it. Do not close the account!

Why would you run out of providers?

I hope everyone checks for a better interest rate every time their fix comes to an end,there's absolutely no good reason to stay in a low interest account

Just make sure you transfer it rather than withdraw and reinvest as the latter removes it from the ISA wrapper

Yes, transfer it to a new ISA but not necessarily a different provider. Check your existing provider's new rates first as sometimes they offer a slightly higher rate to existing customers with a maturing ISA than the rates advertised on their website to new customers.

Thank you everyone! You’ve confirmed that I’m doing the right thing by moving it - and it hasn’t occurred to me that by transferring it (I do know not to close it and then move the money!) the previous account will then be closed.

I feel like Scrooge moving my savings about but it’s a good feeling!

you do not have to move it on Monday, Trading 212 is offering just over 4% on it's cash ISA

You say you have "assumed" it matures on 5th April, have you checked this or been sent maturity instructions?

We each have multiple cash ISA's and I don't think any of them coincide with the financial year.

I have had an email about it maturing although I haven’t double checked the date. But I opened it at the start of this tax year.

Just make sure that the new ISA accepts transfers in. If you just close it you will lose the ISA wrapper. I am with Kent Reliance and they are very good. Excellent customer service.

Transfer when you are not happy with the rate, that may or not be every year and you may have a more than one year fix. The new provider facilitates the switch you just fill in a form for the new provider, don't withdraw the money or you may lose your ISA status on those funds.

Check the maturity date, none of ours mature on 5th April and it is normally a year after the date you opened it.
My bank just moves it from the good rate to a really low rate, if we don’t tell the bank to move it to a new better rate. Depending on the bank we get a letter or email to say it is maturing, what do we want to do. We choose a new rate, for one two or more years. We fill in the form and post or email it back, and wait a year to do it all again.
NEVER withdraw the money, always open a new ISA and fill in the transfer from an existing ISA section. It’s really easy.

It is confusing as you can only add money up to £20k, soon to be 12k, in each financial year, but you might not open a new ISA til August, and that then is the anniversary date.

I’ve double checked it matures on 9 April. While I have been researching I’ve been making sure that the ones I look at allow transfers in, and allow me to add money as and when till I reach the 20k for the year. I’m over 65 so I will continue to be able to invest 20k a year.

I move mine every year but I’ve realised as I don’t need the money any time soon I should move it into an S&S ISA which will at least save me moving it every year. I’m currently with Moneybox.

I looked at PLUM folllowing this as I had never hears of them. I see. They are offering 4.65 and take transfers.Thank for posting this.

Do people do that every year to chase a better interest rate until you’ve run out of providers where you can open a new account?

Not necessarily every year - it depends on the longevity of the interest rate - but yes I regularly transfer my savings from one cash ISA to another for better interest. I'm doing mine now because my current rate drops on 9 April.

I dont think running out of new providers is a thing.

Do you have to close accounts as you transfer it elsewhere each year?

I generally do but I dont think you have to, as you can have more than one cash ISA (but still capped at £20k new savings per year across them).

The important thing is to transfer from your existing cash ISA to the new one. Firstly, this keeps the tax free status. Secondly it means you can put more than £20k into your new one (as it's a transfer, not new savings).

You can do a partial transfer (move some, leave some, keeps old cash ISA open) or a full transfer (closes old cash ISA).

Im doing a mix:

• partial transfer to a higher rate new ISA. This one only allows up to three withdrawals though
• so I'm doing a second partial transfer to a second new isa for ££ I might need to access in-year.

So you need a new cash ISA that accepts transfers (not all do). Some can do this electronically and some require you to download, print, complete and post a form.

You can fix for anything between 1 and 5 years. You could fix half for 18mo-2 years and half for 5 years?

You must transfer though. Don't close and then re-open.

You can do this any time once set up and when the old rate expires.

Ah thank you so much. I didn’t realise I could put some away in one that only allows a couple of withdrawals and some away in a better access one. I have to withdraw my tax payments twice a year but also I might need to move money in an emergency, so I could keep a chunk in one with a better rate that I don’t need to access and then the rest in an easy access one. I hadn’t realised I could do that, I thought I had to transfer it all at once and only have one isa a year.

Yes I transfer my cash ISA to a new provider every time the interest rate drops.
It's about 10-15mins work once per year. It's not a big deal