Isa withdrawal penalty

Pinkwhippet

Sorry if sounds like silly question, but... if I open a fixed term cash ISA and then I need to withdraw some of the money, I understand there is a penalty usually eg 90 days interest. But does that mean 90 days interest on the whole amount or just on the amount you are withdrawing? 

MX5huggy

Which specific account? 

But in this case it is the 90 days on the amount withdrawn not the balance and that is my understanding of how most of these accounts work. See point 8 on page 2. https://www.paragonbank.co.uk/resources/paragonbank/documents/savings/one-year-fixed-isa-terms-and-conditions

Pinkwhippet

Thank you, that makes more sense now :-) 

Malchester

The number of days loss of interest varies by financial institution and length of fixed term. Also some will allow partial withdrawals but others only allow full withdrawal / transfer and closure. Need to check the conditions of the account first

Albermarle

I think I read on another thread that some fixed term savings account , do not allow withdrawal before the fixed term ends at all .
Not sure about that though.

eskbanker

Albermarle said:

I think I read on another thread that some fixed term savings account , do not allow withdrawal before the fixed term ends at all .
Not sure about that though.

Most such non-ISA fixed term accounts don't allow premature access but fixed term ISAs must allow access (even if penalised), as this is mandated by the ISA legislation.