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  • FIRST POST
    Lob Marley
    Halifax ISA Investor - Help with withdrawal.
    • #1
    • 10th May 12, 3:15 PM
    Halifax ISA Investor - Help with withdrawal. 10th May 12 at 3:15 PM
    Hi all,

    When I was 18 (and naive) I opened an ISA. 5 years on and I had a decent amount (around £7k) saved up.

    As I was (and am) in my final year of University and money was tight I decided I needed to access some of the funds.

    So I withdrew £650 from the ISA account. Since then I've received a regulation statement informing me that my account balance had dropped by circa £1,300.

    Basically, I didn't realise that I'd lose money by withdrawing from the ISA as opposed to closing it. Is there any way I can regain that money, or is it gone forever and I've learnt a very expensive lesson?

    Thanks.
Page 1
    • Vortigern
    • By Vortigern 10th May 12, 3:26 PM
    • 2,044 Posts
    • 1,291 Thanks
    Vortigern
    • #2
    • 10th May 12, 3:26 PM
    • #2
    • 10th May 12, 3:26 PM
    What sort of ISA was this? Cash or Stocks & Shares
    If cash, was it a fixed term ISA?
    • Consumerist
    • By Consumerist 10th May 12, 3:28 PM
    • 4,444 Posts
    • 2,206 Thanks
    Consumerist
    • #3
    • 10th May 12, 3:28 PM
    • #3
    • 10th May 12, 3:28 PM
    When I was 18 (and naive) I opened an ISA. 5 years on and I had a decent amount (around £7k) saved up. . . So I withdrew £650 from the ISA account. Since then I've received a regulation statement informing me that my account balance had dropped by circa £1,300.

    Basically, I didn't realise that I'd lose money by withdrawing from the ISA as opposed to closing it. Is there any way I can regain that money, or is it gone forever and I've learnt a very expensive lesson?
    Originally posted by Lob Marley
    The statement should explain where the money has gone. What transactions were on your statement?
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • McKneff
    • By McKneff 10th May 12, 3:35 PM
    • 34,737 Posts
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    McKneff
    • #4
    • 10th May 12, 3:35 PM
    • #4
    • 10th May 12, 3:35 PM
    I think you must be mis reading it, it you only took £650 out, the balance would only drop by £650. Assuming it was a cash ISA.

    Did you take it out twice ie 650 x 2 = £1300
    No one can make you feel inferior without your consent
    • Consumerist
    • By Consumerist 10th May 12, 3:40 PM
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    Consumerist
    • #5
    • 10th May 12, 3:40 PM
    • #5
    • 10th May 12, 3:40 PM
    I see that Halifax ISA Investor is a Stocks & Shares ISA. The shortfall may simply be a result of changing share values and investment charges. If that's the case, there is little you can do to recover your loss in the short term. Over the longer-term the valuation of your investments in the ISA might improve.

    Might be safer to stick with Cash ISAs.

    Edit

    From <Halifax web site> :-
    What is an ISA Investor?
    This is a stocks and shares ISA through which you can invest in the shares of one or more funds of Open Ended Investment Companies (OEICs). It is no longer available to open, however existing customers can still top up their existing ISA Investor. Please remember the value of your investment can go down as well as up and you may get back less than you invested. For more information please read the Key Features document for growth or income (PDF New Window).
    Last edited by Consumerist; 10-05-2012 at 3:44 PM.
    Warning: In the kingdom of the blind, the one-eyed man is king.
  • Lob Marley
    • #6
    • 10th May 12, 4:52 PM
    • #6
    • 10th May 12, 4:52 PM
    Yeah, that's pretty much it. Has it basically lost value because of the stock prices falling then? As opposed to a penalty for me withdrawing it?

    I just want piece of mind to know whether it could have been avoided or not.

    I also would like to access more funds from the ISA, and want to know whether I'd be better closing it or withdrawing the money I need.
    • Consumerist
    • By Consumerist 10th May 12, 5:12 PM
    • 4,444 Posts
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    Consumerist
    • #7
    • 10th May 12, 5:12 PM
    • #7
    • 10th May 12, 5:12 PM
    Yeah, that's pretty much it. Has it basically lost value because of the stock prices falling then? As opposed to a penalty for me withdrawing it?
    Originally posted by Lob Marley
    Unfortunately, you seem to have bought in at the top of the market. At the time it was probably regarded as a better long-term bet than a savings account. So nothing to do with your withdrawal.
    I also would like to access more funds from the ISA, and want to know whether I'd be better closing it or withdrawing the money I need.
    You can withdraw funds at any time providing you leave at least £20 in the account, if I understand the Halifax web page.

    Whether or not you close the account is really a matter of whether you are looking short- or long-term. Historically, the Stock Market has outperformed savings accounts over the long term but if you are likely to need access to more money in the next few years then closure may be your better option.

    If you haven't used all this year's ISA allowance you might want to think about putting up to £5,640 of the proceeds into a cash ISA.
    Warning: In the kingdom of the blind, the one-eyed man is king.
  • Lob Marley
    • #8
    • 10th May 12, 5:58 PM
    • #8
    • 10th May 12, 5:58 PM
    Yeah, I haven't put any money in since I've been at Uni (last 2.5 years). So I'm thinking of moving it elsewhere.

    I see the Santander, 3.3% AER ISA, that looks the best bet I think.

    So closing it, keeping the money I need and then putting the rest in the Santander ISA is what I think the best bet is?

    I will hopefully be putting money back in come September when I've got a post-grad job!

    Thanks for your help, by the way.
    • Consumerist
    • By Consumerist 10th May 12, 6:07 PM
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    Consumerist
    • #9
    • 10th May 12, 6:07 PM
    • #9
    • 10th May 12, 6:07 PM
    You're welcome. Good luck.
    For the record there is a button under posts which you can use if you think it has been helpful.
    Last edited by Consumerist; 10-05-2012 at 6:18 PM.
    Warning: In the kingdom of the blind, the one-eyed man is king.
  • Newbie2saving
    I didn't think you could convert a S&S ISA to cash ISA, but you can do it the other way round. Think once you are in that sector you have to stay, although you can change providers / funds / shares / stocks etc.
    • Consumerist
    • By Consumerist 10th May 12, 6:16 PM
    • 4,444 Posts
    • 2,206 Thanks
    Consumerist
    I didn't think you could convert a S&S ISA to cash ISA, but you can do it the other way round. Think once you are in that sector you have to stay, although you can change providers / funds / shares / stocks etc.
    Originally posted by Newbie2saving
    Qiute right. You have to close or withdraw from an S&S ISA to transfer the funds to a cash ISA; losing the original tax-free wrapper along the way.
    Last edited by Consumerist; 10-05-2012 at 6:21 PM.
    Warning: In the kingdom of the blind, the one-eyed man is king.
  • Lob Marley
    You're welcome. Good luck.
    For the record there is a button under posts which you can use if you think it has been helpful.
    Originally posted by Consumerist
    Duly noted
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