Isa Querie

rangers_fc

Could somebody explain the £25 charge the Aliance & Leicster are charging for changing your ISA is this charge only payable in the year you hold the ISA with them for if you transfer the funds to another provider. After you have held the ISA for the tax year can you withdraw the money free of Tax. Im finding this a wee bit tricky to understand. I realise if you change providers within the first year you pay a £25 fee what happens to the funds after you have held the account for a year?

Kazza242

Alliance & Leicester will not charge you should you wish to make a withdrawal from your isa with them. The £25 charge is imposed if you decide to transfer your ISA to another provider. This charge will be applied whenever a transfer is made from the A&L isa, be that next year, 2 yrs' time, 3ys' time etc. If you decide to transfer your isa from A&L then there is no way to escape the charge.

There are better isa's out there that have similar rates of interest, but without the transfer charge.