MoneyBox ISA

newbieni

I am some money maturing in an account that I am going to use (hopefully) for a house deposit, I want to lock this money into an account for as long as possible and I have two questions to ask:

1. If I use the MoneyBox ISA and I withdraw the £20k after 6 months, do I get the full interest rate up until this point?
2. I assume that if I use my £20k limit on this ISA, I cannot invest anything into my S&S ISA for the tax year?

masonic

You will earn interest for every day the money remains in the account and there is no penalty rate if you make a single withdrawal or close the account. You can only put a maximum of £20k into ISAs in a single tax year. If you instead opted for a flexible cash ISA you would effectively get your £20k allowance back when you withdraw it in the same tax year as you paid it in, so could contribute to a S&S ISA after that. I presume you are not looking to take out the ISA before the end of this tax year, or you'd have next year's allowance to play with.

eskbanker

1. If you withdraw money from a savings account then it will have accrued pro rata interest up to that point, which will be included the next time interest is due to be paid, unless you're closing the account, in which case it'll be added to the closing balance.  Some accounts involve a lower interest rate being payable if withdrawals are made, so you'd need to ensure that the one you're looking at doesn't do this.

2. You can contribute a maximum of £20K into all ISAs collectively in any tax year.

Edit: beaten to it!