ZOPA Smart ISA Newbie Query

saunderd

Hi, I am new to ISA's and have done a lot of reading, landing on ZOPA for my first attempt at this!

I currently have my money in an easy access savings which helps as I am not sure what's what at the mo while I fix up my house (trying not to touch it but just in case!).  This savings account pays my interest monthly into my normal current account.  As I am at the limit of where I would pay tax on the interest this is where I am now going as per MSE advice.

A ) Any flags or warnings about ZOPA or generally ok is the feeling? (I know it's on MSE but I've never used ZOPA so like to get the feeling of more people too!)

B ) Do they give you the option of paying the interest into the ISA or into your current account?  I tried Googling this and see some ISA's do offer the option but could only see the interest paid into the ISA pot on the ZOPA t's & c's - any idea please?  It's a handy small additional income each month you see which therefore helps keep the 'capital' in the pot

C ) If it's not an option to pay the interest into your current account, can this amount be withdrawn without issue (i.e it's not part of your ISA money say that's 20k, and you get £100 interest - can you withdraw the £100 without a problem each month once it's credited to your ISA account)?

Appreciate your help and sorry if I sound like a wally, thank you 

financehelp23

Zopa is very good! INSTANT, good rate. Never had issues I would like to hear the feedback of Plum. Why you want withdraw and noy keep in ISA. It is tax free. You can withdraw anytime from Zopa ISA. 

slinger2

I'm not sure of the answer to B, but C is certainly possible. The Smart ISA is flexible, which means that you can take out any of your money and replace it (or part of it) into the account later in the same tax year. Can be useful for short term cash flow situations.

As to A, the main issue for me relates to transfers out, when you have more than one ISA with them. However that doesn't seem to be relevant for you. Otherwise it seems ok to me. They're offering a 1-year bonus on the EA account, so you need to be aware of that in 12 months time.

Malchester

Just remember that if you opt for a fixed rate ISA with Zopa (or anyone else) you can only withdraw / transfer before the term is up by paying a penalty. Also note that with ZOPA that they do not allow partial transfers so, as all pots (easy access and fixed rate) are classed as one so should you wish to transfer an easy access pot elsewhere without transferring the fixed rate pot you cannot although you can withdraw the easy access funds but would lose tax free status. Of course this is irrelevant if you only want an easy access pot.