What happens when A cash isa matures?
Reading time 5 minutes
At a glance:
A Cash ISA matures when it reaches the end of its agreed term.
When your Cash ISA matures, you can choose to save into another ISA, transfer to another ISA provider, or withdraw your money.
Your provider should be in touch when your maturity date is coming up.
What happens when a Cash ISA matures?
When your Cash ISA reaches its maturity date, this means the interest rate you were offered when you took out the account has ended.
When this happens will depend on when you opened the account (or could be linked to the tax year). For fixed rate cash ISAs, this might be more than one year in future.
Your provider should be in touch before
When your Cash ISA is about to mature, your provider will contact you about what to do next. If you don’t do anything, your money may be moved into another Cash ISA with the same provider.
Annual interest is paid at maturity
If that’s what you selected, any interest earned during the fixed term is usually added to the account at maturity. If you chose a Cash ISA that pays monthly interest, you’ll get your final interest payment at maturity.
What are your options when your Cash ISA matures?
When a Cash ISA matures, there are usually several options available.
Do nothing
If you do nothing, your money may be moved into another Cash ISA with the same provider.
Advantages:
Tax-free interest continues to apply.
You don’t need to do anything.
Considerations:
The new account may have a lower interest rate.
The rules for withdrawing money might be different.
Transfer to another ISA provider
It may be possible to transfer your ISA to another provider if that provider accepts transfers.
Advantages:
Find a new interest rate.
Compare account features, for example, a Cash ISA that allows withdrawals (if that’s what you want).
Considerations:
You’ll need to wait until maturity to avoid penalties or loss of interest.
You must use the ISA transfer process of your new provider to keep the tax-free status of your money.
Withdraw your money
You can also withdraw your money at the end of the term. If you withdraw money to pay into another ISA, without using the transfer process, you’ll lose the tax-free status of your money.
Advantages:
Access to your savings.
Flexibility to use the funds for other purposes.
Considerations:
If you choose to pay your savings into a non-ISA account, it will lose its tax-free status.
Future ISA allowances mean that it could take years to build the money back up again (if you had a large balance currently in a Cash ISA).
What are your options if you have a YBS Cash ISA?
Once your savings have matured, you can stay in the account we transfer your money into. However, you can also transfer your money to another product without loss of interest.
Can you transfer a fixed rate Cash isa before maturity?
There are often penalties and a loss of interest if you transfer a fixed rate Cash ISA before it matures.
Before requesting a transfer, it is important to check the account's terms and conditions.
If you decide to transfer, the new ISA provider should arrange the transfer on your behalf. This helps protect the tax-free status of the savings.
The content on this page is for reference. It is not financial advice. For help with money issues, try MoneyHelper.
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