MSE News: Budget 2015: ISAs to become fully flexible with withdrawals allowed

Krash420

Hi All,

Don't think it's been mentioned yet but Metro are allowing you to withrdraw and relenish during the year. In fact the product is named Instant Access Cash ISA, and it only took about 2 minutes if even that to open if you already bank with Metro.
https://www.metrobankonline.co.uk/Personal/Savings/Instant-Access-Cash-ISA1/

The rate is 1.25% (variable)

le_loup

liamcov wrote: »

So is it now settled that Nationwide are allowing flexible withdrawals of previous years even if not subscribing in the current tax year?

Can someone provide a link to anywhere it says this as I'm looking to open an account later (as I think the Nationwide 1.3% is the best transfer in option?)

Thanks

Try looking on their website:
http://www.nationwide.co.uk/products/isas/isas

"From 6 April 2016 ISA flexibility will be available on all Nationwide cash ISAs (with the exception of Junior ISA). This means you can withdraw money from your cash ISA and replace it (subject to the account terms and conditions) within the same tax year, without it counting towards your annual ISA allowance."

colsten

liamcov wrote: »

Can someone provide a link to anywhere it says this as I'm looking to open an account later (as I think the Nationwide 1.3% is the best transfer in option?)

The link to the Nationwide T&Cs was posted in post 165.

MDMD

colsten wrote: »

The link to the Nationwide T&Cs was posted in post 165.

FAQs also confirm it:

http://www.nationwide.co.uk/support/support-articles/faqs/flexible-isa-faqs#xtab:is-money-paid-in-last-year-flexible

masonic

TSB has updated its Cash ISA Saver page to state:

3.3 Any withdrawals made from your Cash ISA Saver can be paid back into your account within the same tax year (in these conditions we call these repayments ‘replacement subscriptions’). You can withdraw up to the total balance in your Cash ISA Saver (including previous years’ subscriptions) in any tax year...

http://www.tsb.co.uk/savings/isas/cash-isa-saver/cash-isa-saver-terms-and-conditions.pdf

... fortunately for me. I posted my transfer form to them last Saturday and they have already confirmed they expect my transfer to be completed by next Tuesday. Just 6 working days if correct. :T

Edit: Just checked and the money has arrived at TSB by FP today, so that's just 2 working days after receiving my transfer form!

Edit2: And flexible withdrawal of previous year money handled well. I see the amount added on to my "Remaining allowance", which now shows as £15,240 + amount I withdrew.

carlstar

Hoping someone here may be able to answer this as I haven't been able to find an answer myself....

I have a cash ISA from previous years, but have opened a HTB ISA this year. Am I able to withdraw from my previous years' cash ISA and subsequently replace the money this year if I also fill up my HTB ISA allowance?

Archi_Bald

carlstar wrote: »

Hoping someone here may be able to answer this as I haven't been able to find an answer myself....

I have a cash ISA from previous years, but have opened a HTB ISA this year. Am I able to withdraw from my previous years' cash ISA and subsequently replace the money this year if I also fill up my HTB ISA allowance?

That will be fine if by previous year you mean previous tax year. The only thing you cannot do is deposit new money into both, your HTB and another cash ISA, in the same tax year

Have you reviewed whether you can get better interest in current accounts etc than in your old ISA?

jamesd

A HTB ISA is just another cash ISA and it is entirely fine to place new money into another cash ISA in the same tax year provided both cash ISAs are with the same ISA manager.

Yes, you can withdraw past year money from one ISA and pay it back into that ISA in the same tax year even while paying new money into a different ISA. The money withdrawn and redeposited will not count against the current year's allowance. This does apply only if the place you're withdrawing from offers this flexible ISA feature, check that before you withdraw the money. If it doesn't offer the feature just use an ISA transfer to move the money to a place that does, then withdraw from that one.

carlstar

Yes, sorry was referring to the tax year.

I'll be maxing out my PSA in other savings accounts as I'm in the middle tax bracket so only get £500 interest tax free. I may need to make an emergency withdrawal from one of my savings accounts, but as I can make up to 3 withdrawals from my ISA per year without being hit with an interest penalty I think I'll take it from the ISA and pay it back when I can a few months later.

carlstar

My HTB ISA and Cash ISA are not with the same providers which is why I thought there may be an issue with replacing funds in the Cash ISA