Interest if you withdraw/transfer...

BigApples84

Hey guys, just a quick one... If I transfer my savings of about £14000 from one ISA to another (looking at the Nationwide one featured as a best buy Cash ISA) are there any penalties for using the cash before the end of the financial year (April 2013)? I want to max my saving in between now and June/July as then they will be going on a house deposit? I save £1850/month so just wondering what the best solution is for max profit until I find the house? Any help greatly appreciated x

psychic_teabag

There shouldn't be for an instant-access ISA. Fixed-term accounts tend to have an early-access penalty, if they allow access at all.

Could look at regular-saver accounts - they tend to pay higher rates, but with more restrictions. If you pay basic-rate tax, 4% less tax is better than 3% tax-free in an ISA. But check carefully about early access and whether you can miss payments, or at least reduce them to a minimum when you need the money.

If you want to chase every last penny, get a Halifax reward current account and pass £1000 through once a month to get a bonus £5.