The Lemon Fool

Cash ISA's are showing some useful rates, but what are you committing to. Could someone help with what are maybe glaringly obvious queries :

When a fixed term cash ISA comes to the end of its term and it has accumulated say £20800, what are the options?

Can the £20800 be transferred to a different provider offering say a fixed rate term cash ISA and can the full £20800 be transferred ? Can you open another new £20K cash ISA in that new tax year with the same provider offering the same fixed term rate deal?

Can the mature £20800 cash ISA be transferred into a stocks and shares ISA or once a cash ISA always a cash ISA?

Hope these are sensible question, haven't looked at cash ISA's limitations for a while.

It is the interest rate status that comes to an end, not the fact that it is an ISA.
You can ask any provider to transfer the ISA status and funds to them.

Options? Well what do you want.
Cash: Fixed rate or variable?
Equity investment.

The choice really is yours.

If you have the funds you can also open another ISA contributing £20k.

Just remember not to withdraw the cash to move it as it will loose it's ISA wrapper status and you will only then be able to add £20k in the new ISA assuming you still have the full allowance remaining.

You need to transfer it in specie assuming the new provider accepts transfers, some won't.

scotview wrote:Cash ISA's are showing some useful rates, but what are you committing to. Could someone help with what are maybe glaringly obvious queries :

When a fixed term cash ISA comes to the end of its term and it has accumulated say £20800, what are the options?

Can the £20800 be transferred to a different provider offering say a fixed rate term cash ISA and can the full £20800 be transferred ? Can you open another new £20K cash ISA in that new tax year with the same provider offering the same fixed term rate deal?

Yes to all.

scotview wrote:
Can the mature £20800 cash ISA be transferred into a stocks and shares ISA or once a cash ISA always a cash ISA?

Yes- to the transfer ( and 'no' to the once a cash ISA part). I've transferred cash ISAs to a shares ISA ( on 2 platforms - iWeb and ii). Inititiate the transfer process from the share ISA platform, let them transfer the funds in the cash ISA into your ISA shares account.

Thanks all for the info.

This pm I created a 1 year fixed cash ISA with RBS, our bank. The process was straight forward whereby I created a new 1 year fixed cash ISA and also transferred a small easy access cash ISA to it.

Incidentally the RBS rate for a cash ISA with one year fix is 4.4%, pretty good for RBS and all in house. I know rates are probably going up but you have to make a decision sometime.

Again, thanks.