Fixed Rate ISA - Help need to withdraw some!

stylishsummer2010

Hi all

Got a little dilemma.

In May i transfered from a 'ISA Saver Direct (0.50%)' interest and put my money into a '2 Year Fixed Rate ISA Saver (3.00%)' and funded it with the full £5100 for this financial year.

Problem being at the time i didnt think i would need any of the money for at least 2 years. However my circumstances have changed and now i need to take a little of it out.

The account only allows you to close and with a penalty of 180 days charges. This is ok by me as i will have to take a punch for early withdrawal.

The question i have now is can i with the remaining cash sum (around 20k) once closed the account put it into another isa?

I called Halifax they said i could close it but would have to put the money into a normal savings account until the next financial year?

please help and offer some advice.

Cheers in advance.

Lokolo

If you close it, it will come out of ISA and you will not be allowed to put it back in an ISA.

You will have to use future years ISA allowance to put it back in.

stylishsummer2010

Can i not open a different ISA with Halifax and then transfer it?

RayWolfe

Some confusion here perhaps. The "small amount" withdrawn cannot be replaced this year. The balance, of course, can stay in an ISA, either with the Halifax or transferred elsewhere.

bryanb

I'd try to transfer to a Halifax easy access ISA and withdraw after. This way you keep most of the money in an ISA. You can transfer as often as you like. The problem will arise if you close the account.

stylishsummer2010

I think the people over at Halifax said the only way to get money out of a Fixed rate isa whether it is to transfer or withdraw is by closure. Is this right or are they fobbing me off?

Stompa

According to (assuming that's the correct account):

http://www.halifax.co.uk/savings/forms/generic_sav_app/forms/pdfs/1_336202-9.pdf

Withdrawals/Closure/Transfers

Part withdrawals are not permitted.

If you need to withdraw your money you can close the fixed rate account. You can also transfer the fixed rate account to another ISA manager. If you close early or transfer to another ISA manager you will lose an amount equal to 180 days interest, calculated at the rate at which interest is paid on your account.

If your fixed rate account is closed early or transferred then the amount of interest you lose is taken off any interest earned on the fixed rate account. If there is not enough interest earned on the fixed rate account, we will not take this amount from capital, therefore the closing payment will not be less than the money
you originally put in.

Ifts

Transfer your fixed rate ISA to another ISA provider, where you can make partial withdrawals from, that way you get to keep the remainder of your money in the ISA wrapper.

From the Halifax Fixed rate Isa T&C (page 14):

Withdrawals/Closure/Transfers

Part withdrawals are not permitted. If you need to withdraw your money you can close the fixed rate account. You can also transfer the fixed rate account to another ISA manager. If you close early or transfer to another ISA manager you will lose an amount equal to 180 days interest, calculated at the rate at which interest is paid on your account. If your fixed rate account is closed early or transferred then the amount of interest you lose is taken off any interest earned on the fixed rate account. If there is not enough interest earned on the fixed rate account, we will not take this amount from capital, therefore the closing payment will not be less than the money you originally put in.

I think the people over at Halifax said the only way to get money out of a Fixed rate isa whether it is to transfer or withdraw is by closure. Is this right or are they fobbing me off?

According to their terms and conditions that would be correct.

stylishsummer2010

Brilliant thanks you for this. Which page on the pdf do i find the extract you have posted below? Ill take it with me when i go to the branch later.:D

Stompa wrote: »

According to (assuming that's the correct account):


Withdrawals/Closure/Transfers

Part withdrawals are not permitted.

If you need to withdraw your money you can close the fixed rate account. You can also transfer the fixed rate account to another ISA manager. If you close early or transfer to another ISA manager you will lose an amount equal to 180 days interest, calculated at the rate at which interest is paid on your account.

If your fixed rate account is closed early or transferred then the amount of interest you lose is taken off any interest earned on the fixed rate account. If there is not enough interest earned on the fixed rate account, we will not take this amount from capital, therefore the closing payment will not be less than the money
you originally put in.

stylishsummer2010

Excellent, Thank you all for your help. I will post an update once i have had a chat with the Branch

Ifts

arkhan78 wrote: »

Which page on the pdf do i find the extract you have posted below? Ill take it with me when i go to the branch later.

Page 14 on the pdf