Withdrawing from ISA in a tax year

missing_string

Hi all,

I just closed my ISA account by withdrawing all the money, because it was earning me less interest than my Santander 123 account, even though the bank account is not tax free.

Anyway, there was roughly £9000 in there - I'm wondering, does this count towards this year's "withdrawals" or does it not factor in if I've not made any deposits this year? I believe this ISA will earn me more money than my Santander 123:

http://www.newcastle.co.uk/savings/big-home-saver.aspx

But I wondered whether withdrawing the £9000 has affected the ability to not deposit anymore, because I withdrew over the limit of £5,940? Or is that not applied if no contributions been made this FY?

Appreciate the help.

jimjames

The only limit is how much you pay in during the year. There is no restriction on how much you withdraw.

You can do better than Santander and get 5%

missing_string

jimjames wrote: »

The only limit is how much you pay in during the year. There is no restriction on how much you withdraw.

You can do better than Santander and get 5%

Well, I was with Nationwide and earning 5%, but when I did the maths, Santander came out on top because:

a) It's has 3% on up to £20000 (Nationwide was £2500)
b) There's also the cashback on bills

eskbanker

There are other accounts that beat Santander in percentage interest terms (although the 123 has a higher cap than all the others) - Nationwide isn't the only one paying 5% and there's a 4% account too, see the table at http://www.moneysavingexpert.com/latesttip/#savings and many threads on here!

missing_string

eskbanker - thanks so much for that.

I'll be opening a few accounts then to maximise my savings interest.