Closing a Cash ISA - Move Funds to a Savings Account

andiyork

Hi
I'm a little confused with all the posts I read so would really appreciate some advice on my situation if possible..

I opened a Virgin cash ISA many years ago and over the number of years I have built up approx £9k of savings in it. The ISA is currently paying 0.5% interest so I was hoping to move it either to a new savings account or another ISA. The savings account seems to be the better interest rate and I don't have to worry about the PSA limit of £1000.
I haven't deposited any new savings into the ISA since September 2019, so i was wondering if I could just close the ISA, moving the whole amount to my current account without any tax implications. I then plan on opening a 'Marcus' savings account (1.2%) and moving the funds into there.       
Kind regards
A

eskbanker

Yes, you can just close the ISA and shift the proceeds into your current account without any tax implications - once outside the ISA umbrella, any interest subsequently earned is technically taxable but if within your PSA then it would be taxed at 0%.

paul235

Yes you can close the ISA and the funds would be paid with the interest without any tax deductions as savings in ISA's  are tax free.

andiyork

Thank you 🙏 

stuffnthings

I have a similar question but I HAVE been paying regularly into my ISA up to and including today. Can I close it and move my money into a higher interest savings account even though I've paid into it this tax year? My bank have scared me into thinking there will be fire and brimstone if I attempt this. I'm nowhere near earning £1000 a year in interest.

Zorillo

Yes you can.

soulsaver

If you're not touching the funds, you can get up to 1.6% for a 1 year fixed term ac*., maybe more for longer. 
*Vanquis Bank - but some have not had a good CS experience so dyor