Auto ISA to Current Transfer?

geordie_ben

Does anyone know a way to automate moving money from an ISA to a current account?

I'm drip feeding from an ISA into another monthly saver, but it has to pass through my current account.

jonesMUFCforever

Normally you cannot set up a direct debit or standing order on a savings account - so IMO NO is the answer.
Why would you want to feed another saver from an ISA rather than a current account?

geordie_ben

jonesMUFCforever wrote: »

Normally you cannot set up a direct debit or standing order on a savings account - so IMO NO is the answer.
Why would you want to feed another saver from an ISA rather than a current account?

The money is sat in my ISA, every month I need to transfer £200 into my current account and then a S/O takes it to the monthly saver..

I want to automate the coming from my ISA to my current account if possible

PinkPig

It's not usually possible to set up a standing order from a savings account (including an ISA).

What you're doing is unusual - not least because by withdrawing money from an ISA you're losing its tax-free status.

geordie_ben

PinkPig wrote: »

It's not usually possible to set up a standing order from a savings account (including an ISA).

What you're doing is unusual - not least because by withdrawing money from an ISA you're losing its tax-free status.

Why is it unusual? By doing this I gain much more interest than I would compared to just leaving the money in an ISA

innovate

geordie_ben wrote: »

Why is it unusual? By doing this I gain much more interest than I would compared to just leaving the money in an ISA

Are you sure? A good cash ISA usually beats any savings account hands down, both in the short and long term.

How much interest do you get for your ISA? How much interest for your monthly saver?

geordie_ben

innovate wrote: »

Are you sure? A good cash ISA usually beats any savings account hands down, both in the short and long term.

How much interest do you get for your ISA? How much interest for your monthly saver?

3.5 on ISA
6 on Monthly Savers

heloid

You lose out on interest when the regular saver's term ends and goes in to a taxable savings account (unless you never expect to use your full ISA allowance).

Also, have you done the maths?
Shifting to 6% gross (4.8% for most people after tax) is only going to get you an extra 1.3% on what goes in the ISA. That's going to add up to something like £20 difference...

The best way to do this is keep everything in your ISA and use your regular saver to fund next years ISA.

geordie_ben

heloid wrote: »

Also, have you done the maths?

Yes I have done thanks, by drip feeding the money I earn more interest

Hooloovoo

geordie_ben wrote: »

Yes I have done thanks, by drip feeding the money I earn more interest

But you're drip-feeding the wrong way ...

You're looking at the short-term gain over one year, rather than the bigger picture.

innovate

So the numbers work out like this:

£2,400 in ISA @ 3.5% for a year = £84 interest

£2,400 from ISA @ 3.5% dripfed with £200/month for 12 months into a 6% Regular Saver = £101 interest for a basic rate taxpayer.

£17 gained, but the ISA bucket is eroded forever by £2,400.

Do this sort of thing for 10 years, you will make £170 (ignoring any compounding), but your tax-free savings sum is £24,000 less than it could be. You could lose that £170 "advantage" you gained over 10 years in one single year if you have to pay tax on your £24,000 interest.

Seems you are definitely dripfeeding the wrong way.