jmcmanus

sgwbsyci

I have 2 'historic' easy acces cash ISAs ie not paid into for ages, and one in which I have saved in this tax year. Because of the almost non-existent interest rate which Natwest has announced it is about to pay me, I want to take all my money out and put it in the Santander 123 account (pays 3%). I also want to feed as much of the the money as I am allowed from there into a higher interest Regular Saver account (or perhaps more than one ...). I have thought long and hard about this, and can't see why not, but am slightly put off by Martin's big red notice about NEVER TAKING YOUR MONEY OUT OF AN ISA.

I am not a tax payer incidentally. I even rang the Tax Office to ask about what I can do with money I withdraw from an ISA, and the person I spoke to said 'it's your money you can do what you like with it!'

badger09

You say you are not a taxpayer. Are you likely to become one in future?

xylophone

If you withdraw the money from the cash ISA, the tax free status of the interest is lost. If you are not a tax payer and do not foresee ever becoming one, this may not matter to you.

However, as I have commented before, I know someone who is in receipt of a pension under her tax free allowance who would be a taxpayer were it not for the fact that the income from isas built up over many years is tax free.