Cash ISA query

masha

Am I allowed to do the following within 1 tax year : 

Open an easy access cash isa and deposit 20k. After a few months I withdraw the whole amount to my bank account.  

After a few more months I open a fixed term cash isa with a different provider and deposit 20k. 

Therefore I have made 40k in deposits within the tax year, but the actual balance has not exceeded 20k and is still 20k at the end of the tax year. 

Thanks

 

winkowinko

no, but you could put the 20k back into the original isa, providing it's a flexible one

masha

Understood. Thanks for replying. 

slinger2

No. Although, if the first ISA was flexible you could put the £20k back in there (as long as you left it open) and then "transfer" it to the other provider.

masha

Ah yes, I will bear that in mind. Thank you. 

surreysaver

To keep the original ISA open, you may need to leave a token amount in it. The T&Cs may state a minimum amount. If they don't state a minimum amount, I would leave £1 in it to be on the safe side 

masha

Thanks for the advice. 

friolento

surreysaver said:

To keep the original ISA open, you may need to leave a token amount in it. The T&Cs may state a minimum amount. If they don't state a minimum amount, I would leave £1 in it to be on the safe side 

Not all ISA providers support partial transfers out (or partial transfers in)