1 year fixed rate ISA withdrawal

firbyfred

At maturity if we want to issue transfer instructions to move the original invested £20,000 to another cash ISA in order to keep our allowance, would we be able to take out the interest earned or does the whole amount have to be transferred to keep within the rules ?

xylophone

At maturity if we want to issue transfer instructions to move the original invested £20,000 to another cash ISA in order to keep our allowance, would we be able to take out the interest earned or does the whole amount have to be transferred to keep within the rules ?

This is an ISA contribution for a previous tax year and you may transfer as much or as little of it as your choose (including interest) to any other provider accepting transfers.

For example. let's suppose your ISA matures into your provider's easy access product and the interest on your original £20,000 was £200.

You could withdraw the £200 and request your new provider to arrange the transfer in of the £20,000.

Or you could withdraw any amount you chose.

Or you could split the £20,000, asking one new provider to transfer in (say) £15,000 and another new provider to transfer in £5000.

And so on.

firbyfred

Thankyou, very helpful