H2B ISA withdrawal / mm

DriftBunny

I’ve got a 

DriftBunny

…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

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.