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    • Stylehutz
    • By Stylehutz 11th Mar 17, 10:01 AM
    • 264Posts
    • 211Thanks
    ISA allowance query 2016-17
    • #1
    • 11th Mar 17, 10:01 AM
    ISA allowance query 2016-17 11th Mar 17 at 10:01 AM
    Wonder if someone might help as I am confused

    I am just enquiring the best way of using up my current isa allowance for this year as I am not going to be able to put anywhere near in the max allowance of £15,240

    I currently have 2 cash isa's built up from existing years with different providers

    ISA A paying 1% and ISA B paying 1.4%

    I cannot transfer in ISA A to ISA B as it doesn't allow transfers and I have only deposited £4,000 of this years allowance into ISA B. Both ISA's are also not flexible

    My question is, as ISA A doesnt allow to transfer to ISA B, Could I withdraw 5K from ISA A and then put it into ISA B for a better rate of interest?.
Page 1
    • masonic
    • By masonic 11th Mar 17, 10:20 AM
    • 9,124 Posts
    • 6,278 Thanks
    • #2
    • 11th Mar 17, 10:20 AM
    • #2
    • 11th Mar 17, 10:20 AM
    If you don't mind using up £5k of your ISA allowance, then you can do this. Alternatively, you could transfer ISA A to a flexible ISA and then flexibly withdraw the money to gain interest on it elsewhere.
    • bigadaj
    • By bigadaj 11th Mar 17, 10:24 AM
    • 10,781 Posts
    • 7,103 Thanks
    • #3
    • 11th Mar 17, 10:24 AM
    • #3
    • 11th Mar 17, 10:24 AM
    Yes, so long as what you have described is correct then simply take the money out of the old is a and deposit unit the new Isa before the beginning of April.

    You'll see a lot of advice not to take money out of an old is a because you lose the tax free status, however on your case then you won't fill the isa this year otherwise and it's a simple task of comparing the two rates.

    The allowance for next year obviously increase to £20k as well.

    There are also better rates available on current accounts and regular savers, though they need a bit more thought and work, check out the main site and the relevant threads in this board to see a bit more.
    • Stylehutz
    • By Stylehutz 11th Mar 17, 10:32 AM
    • 264 Posts
    • 211 Thanks
    • #4
    • 11th Mar 17, 10:32 AM
    • #4
    • 11th Mar 17, 10:32 AM
    Thank you both for the above reply. Question now answered
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