Nelly

fenella8

As a financial numpty, I would appreciate advice on an ISA. This ISA matured back in May, and was then converted by the building society concerned into a very low-interest ISA. I see that I can now get better rates in several savings accounts, but advice is to never close an ISA. How would I accomplish transferring the ISA cash into a savings account, please? Thank you for help

grumiofoundation

fenella8 wrote: »

As a financial numpty, I would appreciate advice on an ISA. This ISA matured back in May, and was then converted by the building society concerned into a very low-interest ISA. I see that I can now get better rates in several savings accounts, but advice is to never close an ISA. How would I accomplish transferring the ISA cash into a savings account, please? Thank you for help

The advice never to close an ISA is because when you do the money loses its tax-free ISA “status”

If you want to move the money into a (non-ISA?) savings account then the money will lose this anyway however it is transferred. This means you are then liable to be taxed on any interest (subject to tax-free personal allowance).

If you want to transfer to a different ISA (Cash, sticks and shares etc) then find an ISA that accepts transfers in.

The interest rates on easy access cash ISAs and savings accounts are pretty similar at the moment so if that is what you are after likely no real advantage to not keeping money under the ISA wrapper.