Unused ISA allowance savings

hymergeddon

Hi,

I'm a newbie, so forgive me if this is a stupid question

As its coming towards the end of the tax year, I would like to save a small amount of money (<£5000) that I will not require until the end of this year. As cash ISAs appear to offer the best rates, could I open an easy access, no bonus rate, cash ISA to achieve around 3% growth. Would I have to keep this ISA for a year or can I withdraw the money without penalty around December 2012?

Thanks in advance for your help.

Ilya_Ilyich

If it's an easy access ISA you'd be able to make withdrawals whenever you want, no requirement to hold for any length of time.

macman

If you withdraw the money (rather than transfer to another ISA product) then you will lose the tax free status forever-you can't reinvest it in another ISA product once it's withdrawn.