Setting up a standing order

jdeez88

Hi, i need some help in setting up a standing order.
Basically I've just opened up the Halifax 10% regular saver with £500, and i want to transfer money from my Abbey ISA into the new Halifax account. I want to do £500 for the first few months, then I want about £300 for the rest of the year.
Can I have a standing order taking money straight out of my ISA, or does it have to come out of a current account?
Help would be greatly appreciated!
Jay:beer:

baby_boomer

It's usually from a current account.

Most savings accounts don't allow standing orders. I don't know of any ISAs which allow S/Os.

jdeez88

ok, so how do I set it up from my current account then?

sloughflint

Before you do anything, are you quite sure you want to withdraw from the ISA and lose the tax free status for future years? Enough spare money to have both accounts running?

Standing order. If you've already paid £500, you can't pay any more until 1st August.
You could call your bank and ask them to set it up by giving them your RS sort code and account number.

jdeez88

sloughflint wrote: »

Before you do anything, are you quite sure you want to withdraw from the ISA and lose the tax free status for future years?

What do you mean by losing the tax free status? Surely I can open up an ISA whenever I want and it will be tax free?
Sorry if i'm asking stupid questions - i'm a student who's just beginning to learn about finances and budgeting!

sloughflint

Don't worry.
What I meant is this....
You can put up a maximum of £3600 each year in a cash ISA. If you withdraw anything, you can't put it back.
You are a student now so you may not be paying tax anyway maybe but in say three years time ( guessing), you could have accumulated £10 800 plus interest which will continue to remain tax free even though you've become a tax payer.

In an ideal world, if your ISA is pretty good, it might be better to keep the money there but put any extra ( from savings, part-time work?) in your RS and when it matures next July, use that to fund your ISA for 09/10.
Just thoughts for you to mull over.

Withdrawing from a lower paying ISA to fund a top paying RS might be a short term gain but possibly not long term?