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ISA Transfer to fixed savings

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


  • masonicmasonic Forumite
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    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.
  • AlbermarleAlbermarle Forumite
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    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.
  • Widget1974Widget1974 Forumite
    3 Posts
    Second Anniversary First Post
    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’
  • eskbankereskbanker Forumite
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    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....
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