Does withdrawn money have to go be repaid in to the same ISA?

HeparGirl24

Hi - I've looked on all the bank websites and Isa T&Cs but it still isn't clear to me.

At the end of April last year, I put £17500 into a flexible fixed rate ISA with Provider A.  I then started an Instant cash isa with my main bank - Provider B - and transferred £200 a month to that from my current account as I knew I would need the money a few months later.

In mid February, as expected, I had to withdraw £2000 from the instant cash isa.

When I am paid at the end of this month, I will be in a position to "repay" the £2000 but do I have to put it back into the instant cash ISA  I withdrew it from, or can I add it to the £17500 in the fixed rate ISA ?

As I am a first time ISA saver I do not want to run foul of the rules.



 

masonic

You have to repay flexibly withdrawn funds back into the same ISA or they would count as new money.

HeparGirl24

OK.  That's clear now.  Thanks.

Ayr_Rage

Very few fixed ISAs are flexible or allow further additions, do check.

Is the instant access cash ISA also flexible?

You have used £19500 of you annual allowance if I read correctly.

Therefore, if the instant access ISA is flexible then you can put back the £2000 back into that account.

The remaining £500 of your annual allowance can go into either.

You cannot add more than £500 to the fixed ISA in any case as you have not made any withdrawals from that one.

HeparGirl24

Both isa's are flexible.  I've paid a total of £2200 into the instant cash isa so far and withdrawn £2000.  It's not a problem, I'll pay it back into the instant isa and then transfer them both to a new fixed rate isa in April.  I thought it might be easier to pay the money directly into the Fixed Rate isa if it was allowed - but it's not.

slinger2

The rules changed in April 2024, and you must now replace the money into the same ISA that you withdrew it from (in the same tax year), otherwise it counts as new money.