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H2B ISA withdrawal / mm

DriftBunny
DriftBunny Posts: 2 Newbie
First Post Photogenic
edited 3 April 2025 at 9:49AM in ISAs & tax-free savings
I’ve got a 

Comments

  • …H2B ISA that’s got over 12k in it.

    If I withdraw the interest it accrues, will it affect the government bonus contribution figure in any way, if I leave the 12k in there?

    And am I able to partially transfer the excess into a different ISA, like s&s?
  • masonic
    masonic Posts: 29,085 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 2 April 2025 at 7:58PM
    The bonus is paid based on the value of the closing balance, so providing this is at least £12k you'd get the full bonus. Repeatedly ISA-transferring small amounts from the interest, while possible, isn't very practical and would likely be viewed as quite burdensome by the receiving ISA manager. A one-off ISA transfer to give you sufficient headroom would be more practical, but withdrawing interest regularly is the easiest option if you are not constrained by the overall £20k ISA limit.
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