Santander 123 2 Year Fixed Rate ISA. Advice.

supermum1988

Hi everyone,

So I'm new to the whole "Emergency Fund" and recently decided it was probably a good idea to get one started. I have always had a Cash ISA with Santander bit recently upgraded this to a 123 2 year fixed rate. I used to shuffle my money between my Santander accounts (cash Isa to 123 current and vice versa). I have found myself in a bit of a predicament this week and need to transfer what's in my ISA into my current account but now it wont let me. I know partial withdrawals aren't allowed but its the full balance in trying to transfer.

Any ideas?
Thank you

colsten

You need to close the ISA and pay a penalty if you want to make withdrawals before maturity.

Partial withdrawals are not allowed. You can access the whole of your balance by closing the account or by transferring the cash ISA in full to another ISA provider by contacting them directly. On early closure a charge equivalent to 120 days' interest will be applied to the account.

http://www.santander.co.uk/uk/isas/2-year-fixed-rate-isa

supermum1988

Oh, I see, so once I make a payment into it, I cant make a withdrawal? Sorry, my last Isa I could do this, I didn't know there was a difference. When it matures, how do I withdraw? Random question I know. Apologies for my ignorance.

colsten

supermum1988 wrote: »

Oh, I see, so once I make a payment into it, I cant make a withdrawal?

as per what I already posted, you cannot make any withdrawal before maturity. You can only close the ISA at a penalty.

supermum1988 wrote: »

Sorry, my last Isa I could do this, I didn't know there was a difference.

your last ISA was probably an instant access one. Now you have a fixed term one. Different accounts often have different terms.

supermum1988 wrote: »

When it matures, how do I withdraw?

At maturity this product reverts to an ISA Saver
http://www.santander.co.uk/uk/isas/2-year-fixed-rate-isa

This is an instant access ISA, similar to the one you had before.

I recommend you read the terms that you have agreed to.

MarkBargain

Assuming your fund is over £3k, isn't it better to just keep the money in a Santander 123 account (3% interest before tax) rather than their ISA (1.5% or 2% tax free)?

supermum1988

Ah so it will just go back to what I used to have? That makes it easier. Will just have to watch what I put in my Isa now and make sure I'm not left with nothing for emergencies. Oops. Thank you for your help.

supermum1988

MarkBargain wrote: »

Assuming your fund is over £3k, isn't it better to just keep the money in a Santander 123 account (3% interest before tax) rather than their ISA (1.5% or 2% tax free)?

Bah ha ha £3k?? Nowhere near although that would make sense. However, I use my 123 account for everyday use. Wanted my savings put to one side.

colsten

If you have 'nowhere near £3K', perhaps a TSB Plus account would be more suitable than a fixed rate ISA (into which you can't deposit anything after May 31, to add to your issues!)?

TSB Plus pays 5% on up to £2,000 and is instant access. Even a 3% Tesco account would pay more interest than your ISA. But please understand all the T&Cs before you jump.