ISA Transfer to fixed savings

Widget1974

Am I able to transfer money from an ISA when my term ends to a fixed savings account. Looking at the info on site a fixed savings account has a better rate of interest than an ISA and I am no way near the PA limit to have savings taxed

masonic

Yes you can withdraw the money from the ISA and put it in a taxable savings account if that will give you a better overall return. Remember that if it is a substantial sum, getting it back into an ISA in the future may need to be spread over more than one tax year, should you wish to do so.

Albermarle

You can transfer your money from a cash Isa savings account , to a non isa savings account at any time with no restriction .
As you are currently in a fixed term account than obviously would make sense to wait until the term was finished though.

If you are nowhere near the  PA limit for savings interest, and unlikely every to be, then it makes sense to take advantage of the better rates outside the ISA.

Widget1974

What does it mean when I am advised ‘if the money is coming out of an ISA you will lose the ISA status on that amount’

eskbanker

Widget1974 said:

What does it mean when I am advised ‘if the money is coming out of an ISA you will lose the ISA status on that amount’

It means that once the money is no longer within an ISA environment, any subsequent income earned from it, e.g. interest, is taxable, even if it's taxed at 0% when within the personal savings allowance.  'Tax-free' versus 'taxed at 0%' is a subtle differentiation but one that is unlikely to impact your tax bill unless you happen to be close to a threshold between tax bands....

jacqui_endean

Anyone else had problems with Santander? Worst ever. Went to branch and asked if I could pay in £35,000 to my husband fixed rate bond. They took the cheque {which was written from our current account} I gave them all the details of bond ie ac no ola no ref no. They then paid it back into our joint acc. Duh. I said what are you doing and they admitted their mistake and said they would have to wait for it to clear I said no way as my husband is self employed so they said the would reverse it. They gave me the chq back {022011) which I tore up.  I then sent another chq no 022012 for £35,000 to the free post address sent in the email to my husband on 15 sept. Still nothing has happened. What do I do? Agh.

jacqui_endean

I am now on my 2nd phone call to Santander. Still hanging on while they try and sort it

eskbanker

jacqui_endean said:

What do I do?

Start a new thread, rather than piggybacking on an unrelated one about ISAs from nearly two and a half years ago....

jacqui_endean

Still hanging on 1hr and 4 mins

alternate

cheques?  time to embrace online banking