Best way to invest £100k

FrugaiMacDugal

There is no tax on interest earned within an ISA, that's the whole idea of an ISA.

It won't be interest when transferred to current account, it would be a deposit, and unless your current account has a fantastic interest rate, then no tax payable there.

Albermarle

sherbie28 said:

I may have misunderstood but I was under the impression that if I put £20k in this year and then £20k in next tax year. At 5% it earns £2k interest over two years. If in 3rd year I took that 2k out and transferred it to my current account i'be be taxed on it because it's interest. 

If that was the case what would be the point in saving in an ISA, compared to a normal savings account?
Any interest generated in an ISA is not taxable, whether you leave it in there, or withdraw the interest to your current account.