How do I cash in an ISA?

Hammy79

Hello, can anyone help me on this query?

I have a ISA with Halifax which I have locked away for a year on a fixed rate, but now something has cropped up & I need the cash ASAP. Am I allowed to withdraw the cash & close the account or do I need to transfer it to a easy access ISA in order to take the money out?

I only set up this ISA a few days back after I transfered it from another provider.

CLAPTON

what are the terms of the a/c/
do they allow withdrawals within the12 months

DragonQ

If you only set up the ISA a few days ago you might be able to withdraw it because of the "cooling off" period most accounts have.

You need to check the terms and conditions and call Halifax.

Hammy79

The details on the website state:

No withdrawals allowed. Early closure or transfer out permitted. Closing your account early will result in the loss of an amount equivalent to:
1 year term – 90 days’ tax free interest
2 year term – 180 days’ tax free interest
3 year term – 270 days’ tax free interest
4 year term – 320 days’ tax free interest
5 year term – 365 days’ tax free interest

This amount will be taken from the amount you put into your ISA Saver Fixed and therefore you may get back less than you deposited.

To be honest, I'm not sure how to work out what the penalty would be.

Sensory

This is from the account conditions for their ISA Saver Fixed:

You’ve 14 days starting from the day after your account is opened (or, where you have opened your account by phone, from the date you receive your conditions if that is later) to cancel it without charge. (If you cancel a cash ISA, you’ll still be able to open another cash ISA in the same tax year.) Just give us your notice in writing and send this to: Halifax PO Box 548, Leeds, LS1 1WU. This right does not apply to fixed rate fixed term accounts, other than our ISA Saver Fixed. Whenever you cancel, we’ll repay any credit balance outstanding and pay interest on the account for the time your money was with us. Even if you miss the 14 day deadline, you may still close your account, as explained in the account conditions. (If you close a cash ISA in these circumstances, you will not be able to open another cash ISA, either with us or with another provider, in the same tax year.)

Hammy79

Thank you for your help. I will give Halifax a call & get it sorted.