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Withdraw from ISA?

fidgetgreen
fidgetgreen Posts: 43 Forumite
Part of the Furniture 10 Posts
in Savings & investments
Hi,

I have a cash ISA with 2k savings in it and I would like to take 1k out to spend and then transfer 1k to the new help to buy isa when they launch next month. I haven't paid into the ISA this tax year so I should be able to open a new one but what do I need to consider before transferring 1k to my current account?
Will I loose anything?

Thanks,

Comments

  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 23 November 2015 at 6:21PM
    What do the T&Cs of your existing ISA say about withdrawing funds regarding restrictions and penalties?

    Why involve a CA?

    Remember the help to buy ISAs can be funded up to £1200 initially if you don't spend the other £1k
  • jimjames
    jimjames Posts: 18,905 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    fidgetgreen wrote: »
    Hi,

    I have a cash ISA with 2k savings in it and I would like to take 1k out to spend and then transfer 1k to the new help to buy isa when they launch next month. I haven't paid into the ISA this tax year so I should be able to open a new one but what do I need to consider before transferring 1k to my current account?
    Will I loose anything?

    Thanks,

    With £2k of savings an ISA is unlikely to be the place to get the best return when you can get 5% on non ISA current accounts. The HTB ISA is slightly different in that the government bonus is likely to offset the poor interest rates they offer. But if you're saving more than the HTB allows you could be better off putting that in current accounts.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Where can you get 5% on a non isa account please.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • jimjames
    jimjames Posts: 18,905 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 23 November 2015 at 7:37PM
    McKneff wrote: »
    Where can you get 5% on a non isa account please.
    Tsb and Nationwide both offer 5% accounts, lots of information here about them and all the other high interest accounts
    Remember the saying: if it looks too good to be true it almost certainly is.
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    McKneff wrote: »
    Where can you get 5% on a non isa account please.
    And for completeness: no ISA offers anything like 5% interest these days.

    The bonus on the HTB ISA is, however, something worthwhile for FTBs.
This discussion has been closed.
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