Fixed term ISA -regs

happybagger

It was my understanding that the ISA regs require that the saver must be allowed access to their funds, albeit with a penalty. Is that not the case?

Was just browsing Notts BS ISA terms and they forbid closure or withdrawal before the end of the term.
They do allow transfers out with a penalty, which seems to be a 'workaround'. Is this method within the regs?

example

masonic

No, it does not seem to be compliant with the regulations. It is not necessary to transfer to another ISA in order to close the account or access the money.

https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager

https://www.gov.uk/individual-savings-accounts/withdrawing-your-money

https://www.legislation.gov.uk/uksi/1998/1870/regulation/4 (6)

In the example you have given (assuming the T&Cs match), you have a right to withdraw from or close this ISA at any time and there is no specified penalty for doing so. Therefore if you want to do this, ask. If they refuse or try to levy a penalty, complain. If they don't back down within 8 weeks (or issue a final response before that) bring your case to the Financial Ombudsman Service citing the above.