answered 1 year ago
I currently have a 2-year fixed cash ISA with Lloyds TSB which allows me to do exactly what Andy111 is looking for, ie: I can add to the same account each anniversary and actually throughout the fixed term as well. So I transfer to the same account the full allowance again if I can on 6th April...this account can also be managed online.
Lloyds TSB seems to be the only one allowing this however. I was considering moving the account at the end of the term to a 3-year fixed ISA from Halifax but won't in the end, despite a higher % return (4.25 compare to 3.7), because: I cannot add to the same account, the account cannot be managed online and I would end up having to open and manage other ISA accounts each year. So I am renewing with Lloyds for another 2 years.
So why is it then that most banks, except Lloyds, put such restrictions to fixed ISAs? Surely it is not a technical difficulty.
Most, if not all, banks would benefit from allowing their customers to add funds at each anniversary if their rates stayed competitive and the customer would only open a new fixed cash ISA account elsewhere if he found a better rate of return. Customers cannot take the money out until the end of the term anyway (or get penalised).