Can You Borrow Money From A Cash Isa?

AMILLIONDOLLARS

I have a family emergency, and wondered if I could borrow from my Cash ISA with the Nationwide?

AMD

Reaper

No you can't. As soon as you take the money out you can not put it back in (assuming you have used up your allowance for the year).

You could ask Nationwide for a loan and they will take into account the fact you have savings when deciding whether to approve it, which is kind of the same thing.

However the obvious thing to do it withdraw whatever you need. One of the things savings are for is rainy days and a family emergency is just that.

rb10

Generally you can withdraw money from an ISA. However, do bear in mind that you won't be able to pay it back in unless you still have some of this year's ISA allowance remaining.

Check the T&Cs of the account though. Many fixed rate accounts do not allow early closure, or impose strict penalties. If in doubt, ask Nationwide, or post on here the actual name of the account.

23rdspiral

of course, the deadline for putting in all of this years allowance is only a week or so away - April 5th. So as this is an emergency, it may not matter if you cant put it back in as there is not much time left. good luck.

AMILLIONDOLLARS

Thanks all, found out that its not possible!! Back to the drawing board.

AMD

rb10

AMILLIONDOLLARS wrote: »

Thanks all, found out that its not possible!! Back to the drawing board.

AMD

It is possible, even if it is a fixed account. There will just be a penalty involved.

Nationwide's ISA T&Cs are here, condition 44 is the relevant one:

44. The account can be closed prior to maturity, subject to the early access charge or, if applicable, notice period shown below. [...]

The funds in the account, together with any interest earned and less the early access charge (if applicable), will be paid to you within the time stipulated by you or within 30 days whichever is longer. If there is insufficient earned interest on the account to meet the early access charge, then all or part of the charge will be taken from the balance in the account.

45. If the account is closed, the whole deposit may be withdrawn immediately, less any early access charge, by cheque against cleared funds. Withdrawals in cash will not be permitted.

It also gives the interest penalties there, which are between 3 and 6 months' loss of interest.

soulsaver

Possible to withdraw, not possible to 'borrow' it.