Help with understanding Fixed ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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Snow3175Snow3175 Forumite
3 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I have a Fixed Rate Cash ISA to 30 November 2015. Does anyone know what that means.

I've read the booklet they gave me and it said 'withdraws are not permitted. Closure is permitted subject to an amount equivalent to 180 days loss of interest on the closing balance'. What does this mean.

Is it possible to get that money out or do I have to wait till 2015.

Replies

  • eskbankereskbanker Forumite
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    It means that if you decide you need the money within the next two years, then you can't selectively take some of it out and the only option would be to close the account to get it all out in one go, for which they'd charge you roughly half a year's interest. So, if you had, say, £5K at 2% interest, they'd charge you about £50 to close the account (by deducting this from the closing balance).
  • Thanks for your reply, if i close my ISA how will i get my closed balance. Will it be given in cash or sent to my bank account.
  • BobQBobQ Forumite
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    Snow3175 wrote: »
    Thanks for your reply, if i close my ISA how will i get my closed balance. Will it be given in cash or sent to my bank account.

    That will depend on the terms of the account. If they stipulate that all repayments/interest go to a nominated bank account then this is what will happen. If they do not stipulate this then they allow you to withdraw it in cash at a branch.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • jimjamesjimjames Forumite
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    Snow3175 wrote: »
    Thanks for your reply, if i close my ISA how will i get my closed balance. Will it be given in cash or sent to my bank account.

    And remember if you do that then you will lose your ISA allowance. If you only need some of the money before 2015 then you may be better off transferring to another instant ISA and withdrawing the amount you need so the remainder stays inside the ISA wrapper.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • What do you mean by losing my allowance. And it's all the money I'd like to get not just some. And does closing an ISA account early affect credit ratings.
  • le_louple_loup Forumite
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    Wind up?
    Yes, it's got to be.
  • jimjamesjimjames Forumite
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    Snow3175 wrote: »
    What do you mean by losing my allowance. And it's all the money I'd like to get not just some. And does closing an ISA account early affect credit ratings.

    Why did you take out a fixed term ISA when you needed the money?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • McKneffMcKneff Forumite
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    le_loup wrote: »
    Wind up?
    Yes, it's got to be.


    Definitely....
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
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