Withdrawing cash from ISA to Santander123

Joladeda

Hi there, given the amount that can be saved in a cash ISA is increasing substantially later this year, am I right in thinking this has a big impact on Martin's advice below from a blog post on 11 March, 'Does the Santander 123 3% interest beat the top cash Isa?'? Taking the example below of withdrawing £20,000 from an ISA, once the cash ISA limit is £15,000 it would only take 2 years rather than 4 to put the cash back into an ISA, meaning it is more likely to be worth going for short-terms gain in a current account, and then putting it in an ISA towards the end of the tax year. Have I understood that correctly? Thanks.

"So overall you can see it’s a balance. However it’s worth noting if you are considering removing money from an old Isa to put into a Santander 123 account, then I’d be careful. Let’s say you take £20,000 out of your old Isas – if you wanted to get it back in at some stage in the future, with current Isa limits, it would take you four years. So if you’re planning on doing that, do really weigh up whether the short term gain is worth it."

Archi_Bald

Yes, seems the article was written before the budget and hasn't been updated since.

There are also other accounts than the 123 , paying better interest - albeit on lower sums