ISA to credit card

momuse

I used my isa savings to pay some of my credit card off, but the amount paid off is a few pounds less than the amount i paid in. No mention of any transaction charges or anything. Is this an error or is the tax being taken out when I transfer, because I though isas were tax free?

TheBanker

Who is the ISA provider, who is the Credit Card with, and how did you make the payment?

eskbanker

momuse said:

I used my isa savings to pay some of my credit card off, but the amount paid off is a few pounds less than the amount i paid in. No mention of any transaction charges or anything. Is this an error or is the tax being taken out when I transfer, because I though isas were tax free?

Whatever the issue is, it won't be tax.

Did you make a withdrawal from your ISA to a current account, and from there made a payment (via bank transfer?) to your credit card company?  What are the amounts showing at each step of the process?

etienneg

What kind of ISA was it? Fixed rate ISAs often have a penalty for withdrawing during the fixed term, so it's quite possible to get back less than you paid in.

momuse

Ok so it's an instant isa saver, both the isa and the credit card are with Halifax so I did a straight transfer from isa to Halifax. Isa transfer says 99.9, cc says i paid off 97. It has a warning when I transfer out of isa that I will lose my tax free status on the amount before I transfered. No other charges or steps along the way I just thought it was a bit strange.

eskbanker

momuse said:

Ok so it's an instant isa saver, both the isa and the credit card are with Halifax so I did a straight transfer from isa to Halifax. Isa transfer says 99.9, cc says i paid off 97. It has a warning when I transfer out of isa that I will lose my tax free status on the amount before I transfered. No other charges or steps along the way I just thought it was a bit strange.

If you withdraw £99.90 from an ISA then that's the amount that should be credited to the destination account - the fact that interest income subsequently earned on that would be taxable doesn't affect the value of that sum itself.

I'm still none the wiser as to why a transfer of £99.90 would show as £97 at the destination elsewhere within the same institution, so can't think of anything other than to contact Halifax and ask them.