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How easy is it to withdraw money from ISAs?

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I'm looking at opening a savings account with Halifax (that's who I have my personal account with).

I'm thinking the ISA Reward Bonus Saver might be a good fit:
https://www.halifax.co.uk/isas/cash-isas/isa-reward-bonus-saver.html

As I see I get more interest if I withdraw 3 or less times, giving me some incentive not to keep dipping into my savings.

It seems like most of the other accounts have 'unlimited' withdrawals though, so would this work a lot like a normal bank account?

I'd like it if it was made quite difficult for me to withdraw money, say if I had to physically go to my local branch and withdraw from inside. I'd prefer not to have the option to just go to my online banking and transfer money to my personal account.

Does anyone have any recommendations?

Comments

  • Zanderman
    Zanderman Posts: 4,863 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Do you need it to be the ISA version? The normal Reward Bonus Saver gives the same rate I think.

    Re access, that would almost certainly be via online banking as normal, and this account does have unlimited access, it just penalises you (big time!) if you withdraw more than 3 times.

    So if you're looking for ways to disincentivise yourself from withdrawing this doesn't help physically, only in terms of penalties after 3 withdrawals.

    If you want to get a good interest rate there are better deals elsewhere, and if you want to disincentivise yourself from withdrawals a fixed rate saver with no withdrawals might be worth considering. 

    Have you reviewed what's available generally? Here's a good start:
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
  • Band7
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
    If I was choosing an ISA now, I would go for the Virgin Easy Access Exclusive

    But first I would check whether an ISA is actually worth it for me: https://www.moneysavingexpert.com/savings/best-cash-isa/#needtoknows

    If you are having urges to withdraw your money, may be putting some money in fixed term accounts, or in notice accounts, might be of interest. You don't have to commit all your money to the same purpose/account.
  • Zanderman said:
    Do you need it to be the ISA version? The normal Reward Bonus Saver gives the same rate I think.

    Re access, that would almost certainly be via online banking as normal, and this account does have unlimited access, it just penalises you (big time!) if you withdraw more than 3 times.

    So if you're looking for ways to disincentivise yourself from withdrawing this doesn't help physically, only in terms of penalties after 3 withdrawals.

    If you want to get a good interest rate there are better deals elsewhere, and if you want to disincentivise yourself from withdrawals a fixed rate saver with no withdrawals might be worth considering. 

    Have you reviewed what's available generally? Here's a good start:
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
    Thanks! I wasn't actually aware there was a difference between an ISA and a regular savings account.

    I noticed the ones that don't allow any withdrawals, I'm tempted to go down that route... just it seems a little risky incase I have a genuine reason to dip into my savings!
  • Band7
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
    Thanks! I wasn't actually aware there was a difference between an ISA and a regular savings account.

    Note: "regular saver accounts" are a specific type of savings accounts, not to be confused with "normal" savings accounts. See here: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

    Regular Savers might actually be a good alternative for some or all of your money. There is a dedicated thread about them on this forum.


    I noticed the ones that don't allow any withdrawals, I'm tempted to go down that route... just it seems a little risky incase I have a genuine reason to dip into my savings!
    You can consider splitting your money - say 20% in instant access, and 80% into a fixed term or a notice account. Or 50 / 50, or whatever suits your need. It doesn't all have to be in the same place.
  • Zanderman
    Zanderman Posts: 4,863 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 11 January 2023 at 9:03AM
    Band7 said:
    Thanks! I wasn't actually aware there was a difference between an ISA and a regular savings account.

    Note: "regular saver accounts" are a specific type of savings accounts, not to be confused with "normal" savings accounts. See here: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

    Regular Savers might actually be a good alternative for some or all of your money. There is a dedicated thread about them on this forum.


    I noticed the ones that don't allow any withdrawals, I'm tempted to go down that route... just it seems a little risky incase I have a genuine reason to dip into my savings!
    You can consider splitting your money - say 20% in instant access, and 80% into a fixed term or a notice account. Or 50 / 50, or whatever suits your need. It doesn't all have to be in the same place.
    Good point but I think user19860331 was probably using the term 'regular' in the US sense as in 'everyday' or 'normal' so might be a bit confused by your stating that regular savers are not normal!.  He/she has used Americanisms before (see e.g. their recent thread title about when the cost of living crisis "will likely end" - which is definitely not UK English!)
  • Zanderman
    Zanderman Posts: 4,863 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Zanderman said:
    Do you need it to be the ISA version? The normal Reward Bonus Saver gives the same rate I think.

    Re access, that would almost certainly be via online banking as normal, and this account does have unlimited access, it just penalises you (big time!) if you withdraw more than 3 times.

    So if you're looking for ways to disincentivise yourself from withdrawing this doesn't help physically, only in terms of penalties after 3 withdrawals.

    If you want to get a good interest rate there are better deals elsewhere, and if you want to disincentivise yourself from withdrawals a fixed rate saver with no withdrawals might be worth considering. 

    Have you reviewed what's available generally? Here's a good start:
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
    Thanks! I wasn't actually aware there was a difference between an ISA and a regular savings account.

    I noticed the ones that don't allow any withdrawals, I'm tempted to go down that route... just it seems a little risky incase I have a genuine reason to dip into my savings!
    If you don't know the difference between ISAs and ordinary savings accounts I suggest you read up on the whole concept of what is available in savings products before choosing one.
  • born_again
    born_again Posts: 20,248 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    You also have to remember you are limited to £20K (at the moment) Total deposit a year. So if you put £20K in now, then withdraw £10K. You can not put anymore funds in.

    TBH, as ISA is only of real benefit if you have a lot of savings & are going over the savings tax allowance.
    Life in the slow lane
  • eskbanker
    eskbanker Posts: 36,942 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You also have to remember you are limited to £20K (at the moment) Total deposit a year. So if you put £20K in now, then withdraw £10K. You can not put anymore funds in.
    You can reinstate that £10K (within the same tax year) if the ISA is a flexible one, as many cash ISAs are now:

    https://www.moneysavingexpert.com/savings/flexible-isas/
  • Thanks for the replies everyone

  • You also have to remember you are limited to £20K (at the moment) Total deposit a year. So if you put £20K in now, then withdraw £10K. You can not put anymore funds in.

    TBH, as ISA is only of real benefit if you have a lot of savings & are going over the savings tax allowance.
    Oh I can safely say I won't be capable of saving anywhere near that amount in one year 😂 Thanks though
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