ISA - Cashout advice

Hoopsah

Hi,

Hopefully just a quick one.

I currently have £1,600 in an ISA account (Just the standard savings one)

I also have just over £1,500 in a savings account.

The money is needed to pay a bill that I have,

Is it OK to withdraw it from the ISA just now or does the interest not get calculated until April,

If that is correct, would I be as well transferring my savings in to the ISA before the end of March ( I an no where near my yearly amount)

Thanks for any advice

Cheers

Gerry

jennyjj

Hoopsah wrote: »

Hi,

Hopefully just a quick one.

I currently have £1,600 in an ISA account (Just the standard savings one)

I also have just over £1,500 in a savings account.

The money is needed to pay a bill that I have,

Is it OK to withdraw it from the ISA just now or does the interest not get calculated until April,

If that is correct, would I be as well transferring my savings in to the ISA before the end of March ( I an no where near my yearly amount)

Thanks for any advice

Cheers

Gerry

Hi Gerry,
With every savings account I've ever encountered, the interest is calculated daily anyway, even if it is credited every 6 or 12 months. So you are not likely to lose any interest in any case. You'll lose that bit of tax shelter, but that's hardly a big deal on this amount.

badger09

Hoopsah wrote: »

Hi,

Hopefully just a quick one.

I currently have £1,600 in an ISA account (Just the standard savings one)

I also have just over £1,500 in a savings account.

The money is needed to pay a bill that I have,

Is it OK to withdraw it from the ISA just now or does the interest not get calculated until April,

If that is correct, would I be as well transferring my savings in to the ISA before the end of March ( I an no where near my yearly amount)

Thanks for any advice

Cheers

Gerry

Is your ISA fixed rate/fixed term or instant access?

If it is fixed rate/fixed term, there will be a penalty for withdrawing from it before the maturity date.

If it is instant access you can withdraw when you want. If you withdraw everything & close it, interest will be calculated up to the date of closure & added to your balance. If you withdraw most of it, but leave whatever is specified as the minimum balance, which could be £50 or as little as £1, depending on the T&C, then interest will be calculated on the normal due date. That could be 12 months after you opened the ISA, or any other date specified in the T&C.