Isa

jetsetwilly_2

Got £2000 to put in savings but I have to pay it back in 10 months. Can I withdraw money from an ISA or is it stuck in their for 12 months?

5.05% seems a good rate tracking above base rate with Nat Savings

edda

As long as the conditions allow you to withdraw it, you can.
But beware:
- Once you take money out of an ISA you cannot put it back in for that year (e.g. £2k out means you can only invest another £1k in that tax year)
- Some accounts have a penalty for withdrawing (notice period or charge)

You just need to do some sound research.
ISAs are worth it if the interest rate is better than the nett rate you can get on any account (ISA or non-ISA). Check the nett rate on other accounts depending on whether you are a non taxpayer; basic rate taxpayer or higher rate one.

Scully's_Girl

Hey JSW, an ISA is a good choice here. The great thing about an ISA is that you dont have to leave it in for the full term. You only have to keep the deposit under £3000, which is your allowance for the year. So, if you put £2000 into an ISA, you have £1000 left to put into it during that tax year. If you withdraw the £2k, you can still only add £1000, since you've already used part of your allowance. I hope that makes sense.
So the quick answer is, you can put it in an ISA, use the tax benefits, & take it out when you need it with little penalty. Check with the bank you use to be certain there are no imposed fees on their end though

jetsetwilly_2

Cheers guys, I looked into it and you can withdraw