Advice given by Martin

jenpet

Am I  right that Martin advised people to save their money in a savings account then before ISA's mature at the end of the financial year in April, transfer the £20.000 back to your ISA 
Has anyone done this and how did they go about it?
I was thinking of leaving £10.000 in the Isa & transferring £20.000 elsewhere then in March transfer it back to the ISA

eskbanker

Sounds like you're thinking of the ISA flexibility that was introduced (for some products) a few years ago, whereby you could benefit from higher interest rates paid outside ISAs: https://www.moneysavingexpert.com/savings/flexible-isas/#trick

However, in recent times, the unavailability of even semi-decent interest rates erodes the benefit of doing this, compared with the differential that was present at the time flexible ISAs were introduced - it's not a complete waste of time but just not as advantageous as it used to be when that article was first written.

Perhaps that piece contributed to the baffling misconception held by some that a full year's interest will be paid on ISAs that are only funded immediately before year end....

Albermarle

The approx. difference between an easy access ISA and a non ISA savings account is 0.2%.
So you might make a profit of £40 at most .
Do you know if you are a basic rate taxpayer you can earn up to £1000 in interest before paying tax on it . So for most people a cash ISA is redundant anyway .

dunstonh

It should be noted that Martin does not give advice.   He gives a journalistic opinion.

soulsaver

jenpet said:

I was thinking of leaving £10.000 in the Isa & transferring £20.000 elsewhere then in March transfer it back to the ISA

That would work if you're talking about a flexible ISA. Check that is what you have before w/d your cash.
And note the above posts - ensure it's worthwhile for you. And if so, you're not limited to the £20k.