ISA with limited withdrawal and no deposit limits 23 October 2022 at 8:51PM in ISAs & tax-free savings 6 replies 171 views

Livingthedream

Hi all, got an ISA at the moment with TSB aer 1.29% with limited withdrawals (interest penalty) but with the ability to deposit cash all year round up to my £20k limit.

The question I have is there better out there with the same same caveats ie limited withdrawals and the ability to deposit throughout the financial year.

I've seen access ISAs for around 2% but is there anything better than this for limited access with unlimited deposits

Most of the 1 year fixed I've seen with good interest rates have a limited time to deposit cash and/or heavy penalties.

Best I've seen is Barclays 1 yr flexible ISA @ 2.85% 

RobM99

Do you need a cash ISA? If not, there atre much better rates available.

Livingthedream

Yes Cash ISA but with the ability to deposit throughout the year with limited ability to withdraw, fixed for 1 or 2 years 

Yorkie006

If you want to be able to deposit money all year round, would it be possible to transfer your existing ISA to a better fixed rate account and then open another easy-access ISA (assuming you haven't contributed on the one you have already) and make the deposits there? Then at the end of the fixed term you could consolidate both the fixed and easy-access into one and transfer it to another fixed rate, open another easy-access and keep repeating... I think all fixed rate ISAs only give you a fairly short window to make deposits.
Btw, Coventry BS has an easy access ISA at 2.25% variable.

md258

There seem to be some odd requirements:

I'm not sure why you want fixed (rather than variable) interest- surely it's just the case of the higher the better?

You seem to want limited access (rather than unlimited access)- is this to control yourself so you don't withdraw?

If I were you, I'd be looking at a combination of a fixed rate ISA (for some/all of the previous years subscriptions) and a flexible easy access ISA for this years subscriptions. You can always withdraw from an ISA in an emergency.

Livingthedream

Thanks for the replies all, @md258 yeah it does sound like some odd requirements, but just want the ability to keep putting money in monthly with the ability to remove the cash if needed without harsh penalties.

Didn't realise you could have a fixed rate cash ISA and variable cash ISA in the same year, will look into this 

jimjames

Livingthedream said:

Thanks for the replies all, @md258 yeah it does sound like some odd requirements, but just want the ability to keep putting money in monthly with the ability to remove the cash if needed without harsh penalties.

Didn't realise you could have a fixed rate cash ISA and variable cash ISA in the same year, will look into this 

You can't normally although some exceptions like Nationwide. Can you explain why the highest rate variable ISA isn't a viable option? You can then add money when you want and no penalties to remove. Or non ISA account pays higher with even less restrictions.