Moving money out of ISA

CashMoney

Hi, my ISA rate has just dropped and looking around there are not many better options. I am part of 2 credit unions (Penny Post and Commsave) and I know past performances are not an indication of future dividends especially with the impact of Coronavirus but both unions have given over 2% the past 5 years. I want to take the money out of my ISA (yes I know I will lose the wrapper and start again from 20k allowance if in future ISA rates go up) and place it in both the credit union accounts with 50k (which is the max you can put in Penny Post) and the rest in Commsave. What would the process be for this? The ISA I have is the Virgin Double Take and my current account is with Nationwide. I currently have both Commsave and Penny Post as "payees" with Nationwide so in the past when I have transferred small amounts from current account to them it has been an easy process. But not sure how I can move the money out of my ISA to the 2 credit unions. Can I add them as "payees" on Virgin and then transfer or would I need to move all of the money to current account and then transfer over to credit union accounts then?

Albermarle

Normally on line savings accounts /Cash Isa's have a 'linked account' that is usually your current account and they will not out to any other account.
A savings account is not a current account so you can not set up payees.

colsten

I would probably close the ISA and have the balance + closing interest transferred to a current account. Then feed the target accounts from the current account.

This is purely a suggestion about the technicalities. I have no opinion on whether it's a good or a bad idea to move the money to CUs, and I don't believe you asked for one, anyway

CashMoney

Thanks for your replies.
@Albermarle - I'll go that route then and move the money to current account first.
@colsten - As above, I'll check with Virgin first if that is the best way of going about it. In regards to whether it's a good idea or not, I believe bank interest rates are going to drop further (possibly negative). Also just really annoyed that after switching over my ISA to Virgin just a few weeks ago they decide to drop the rate. I can't blame them seeing as others have dropped elsewhere but the least they could do was let me have the higher rate for 6 months or so before dropping it 

MDMD

CashMoney said:

Thanks for your replies.
@Albermarle - I'll go that route then and move the money to current account first.
@colsten - As above, I'll check with Virgin first if that is the best way of going about it. In regards to whether it's a good idea or not, I believe bank interest rates are going to drop further (possibly negative). Also just really annoyed that after switching over my ISA to Virgin just a few weeks ago they decide to drop the rate. I can't blame them seeing as others have dropped elsewhere but the least they could do was let me have the higher rate for 6 months or so before dropping it 

You could apply online to their flexible easy access ISA and transfer in the Double take to it as part of the application.

https://uk.virginmoney.com/savings/products/virgin_easy_access_cash_isa_issue_29/

Ad this is flexible you can then withdraw the balance (bar £1) and then have the option to pay in again by 5 April if you need to without impacting this year’s allowance.