ISA questions

[Wallabyone]

I’m fairly new to this, so apologies for the possibly stupid questions.

I have an ISA from last year. My bank has a different ISA option with a lot more interest being offered.

Can I/should I transfer the money over to the higher interest ISA, or will this count as a whole new ISA and therefore fill my allowance for the year?

I would like to save the same again this year, but don’t want to break the rules.

Thanks!

Transfers do not count as new money going in.
Not all Cash ISA will accept a transfer in, so check if this new account does accept transfers.

Keep in mind accessibility, avoid being locked in. Many cash ISA are flexible ISA these days but not all, so read the terms carefully and make sure it suits you.

For longer term investing use a Stocks & Shares ISA and a Pension. Cash ISA is useful for short term, but will typically pay less than inflation so the money goes down in real terms.

Thanks so much for taking the time to reply.
That’s really helpful to know re transfers-and I’m assuming this still applies even though it will be within the same bank?

I have a pension (teachers’) but have had several gaps in service, so I don’t know how great that will be.

Same bank - still different accounts, so still a transfer so long as you requested it to be transferred, not you taking money out and then you paying money in.

Yes you can transfer even with the same bank and it doesn't count towards your ISA allowance for the current tax year. Usually you have to open the new account and fill in a transfer form and the bank will do the rest.

Make sure the new account accepts transfers in and the old account doesn't have penalties for closing early if it's a fixed rate or notice account.

MoneySavingExpert is good for explaining ISAs. Moneyfacts is good for comparing interest rates.

Thank you so much-I’m going to get in touch with my bank tomorrow 😊

We shift our isas regularly. A lot of providers give a bonus for the first year, so we take the best, and switch when it matures. Do not withdraw the isas though. Open the new one and use them to transfer from the old to the new. That way you maintain the tax free status.