Withdrawing from a ISA

tsmiggy54

I have a existing ISA from previous years. I have not put anything into this ISA this tax year. Can i just take money out, and then put that money into a new ISA, that i have opened in this tax year. The new ISA is with a totally different provider.

Thanks

mebu60

I am assuming you are referring to a Cash ISA. If the new provider accepts transfers-in you can use their process to transfer the old Cash ISA to your new one. If you take the money out of the old one you will lose the tax wrapper benefits and it would be treated as new money into the new ISA with the £20k annual limit applicable. So be sure to do this through your new provider. 

tsmiggy54

Yes it is Cash ISA easy access. So technically is i took £5000 out, then deposited that same amount into my new ISA, then i would be within my £20000 limit. But i would only have £15000 remaining. I would be able to do this, without a transfer or am i wrong.

Thank you

Barkin

Yes, you could do that, but I don't know why you'd want to when you can arrange for the new provider (as long as both providers allow partial transfers) to do the leg work while retaining your £20k allowance. 

tsmiggy54

When i looked at my current provider, it said partial withdraws not allowed. So i have messaged them, to check. 

RobfromCornwall

tsmiggy54 said:

When i looked at my current provider, it said partial withdraws not allowed. So i have messaged them, to check. 

This would mean that you can't do partial withdrawals.

Why don't you want to transfer the entire amount?  If they are both easy access ISAs (which you suggest they are) then going with the best interest rate is the only real decision. 

eskbanker

Perhaps it would help if you clarified what the two products are, how much is in each of them, and what you're trying to achieve?

Barkin

tsmiggy54 said:

When i looked at my current provider, it said partial withdraws not allowed. 

That's a strange "easy access" product. 

Do you mean partial transfers, perhaps?

What, exactly, are you wishing to do? 

Ocelot

If you are merely intending to open a cash ISA for the current tax year, you could put new money into it (assuming you have any to do this with). If you want to move the money from a previous tax year's ISA into a new one (because the rate is better), do not withdraw it, go through the transfer out process.

tsmiggy54

eskbanker said:

Perhaps it would help if you clarified what the two products are, how much is in each of them, and what you're trying to achieve?

You are correct. I have £40,000 in a Easy Access ISA with Shawbrook from previous years. I now have £10000 in Charter Savings Bank Easy Access ISA for this year. Because Charter offer a better rate than Shawbrook, my thought was to transfer some of that ISA to Charter. But i get conflicting views, about Partial Transfers. So i am still waiting for Shawbrook to answer my question. Hopefully this makes things clearer. Maybe i am going about it the wrong way. I am open to views.

Thanks 

Angelica123

tsmiggy54 said:

eskbanker said:

Perhaps it would help if you clarified what the two products are, how much is in each of them, and what you're trying to achieve?

You are correct. I have £40,000 in a Easy Access ISA with Shawbrook from previous years. I now have £10000 in Charter Savings Bank Easy Access ISA for this year. Because Charter offer a better rate than Shawbrook, my thought was to transfer some of that ISA to Charter. But i get conflicting views, about Partial Transfers. So i am still waiting for Shawbrook to answer my question. Hopefully this makes things clearer. Maybe i am going about it the wrong way. I am open to views.

Thanks 

Why not transfer all the money from Shawbrook to Charter if the rate is better? What is advantage of saving some in Shawbrook ?