Take money out of an ISA

Alisha2008

Hi,

I have an ISA in Santander with a bonus that expires in July, then the interest drops to 0.5%. I have another one in HSBC with a much better interest, but it does not allow transfers.

Would it be ok to take the money out of the Santander ISA , put it in my current account and then transfer it to the HSBC as "new" money? Sadly this year I can't save any new money , so this would be using my allowance..

I've read in lots of places that money should never be taken out.. but I think in this case it would be ok? Or am I missing something?

Thanks

dtaylor84

There is little point in putting money in an ISA if you are never going to take it out!

The "don't withdraw it" advice is just to stop people who don't understand the transfer process from wasting their allowance.

If you've no other money to put in an ISA this tax year, then there's no problem withdrawing and depositing in the new ISA -- as long as the balance is less than £5760.

innovate

Don't forget to inlcude any interest in the balance.

Alisha2008

Thanks , that's what I thought.. will wait till July (when the bonus expires) and then take it out and put it on my other ISA.