Cash ISA maturity options

nigel1457

Re Matured Cash ISA - I set up a Cash ISA with Shawbrook Bank which matured at the end of September 2024. I understand that interest earned is “tax free”. Total amount in my account approx £21150. Now I would like to withdraw the total amount and reinvest in an existing savings account, however, Shawbrook have informed me that if I withdraw the money to my First Direct current account I will lose the “tax free” benefit on the interest that was gained during the 12 month period that I was in the Cash ISA and therefore be liable for tax (at 20%, I’m at basic rate tax payer). If this is correct what was the benefit of saving in a Cash ISA. Moving on, how do I get my money out without attracting tax. I am definitely confused and the first to admit that I might be a bit thick. Thanks, Nigel

eskbanker

Sounds like crossed wires somewhere - the money (including interest) isn't taxable while in the ISA, but once withdrawn then any interest earned on that money from then onwards would be taxable.

mebu60

You can withdraw the funds from your ISA completely tax free. Once in a standard savings account any interest subsequently earnt will be liable to tax subject to your allowances. 

Albermarle

Probably it is just the wording is not as crystal clear as it should be.
What it will be trying to say is that if you withdraw it all, the money will lose its tax free status in future.