Flexible cash ISA - withdrawing interest

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This discussion was created from comments split from: Flexible ISA fund interest withdrawal (and adding back in).

MotoRacer

Hi . I’m new to this ! 

Have a 20kflexible cash isa in 24/25yr and a 20k in 25/26yr both with T212 and thought I could withdraw the money made each month to help me poor wages. 

But I see my cash isa pot going down when I do this !!!   Do all these flexible cash isa do this? Can anyone shed any other way to achieve the initial idea or is this not allowed ….does a chip isa do the same?

slinger2

Have you got 2 Cash ISAs with T212? I'm a bit surprised that's allowed.

When you take money out of a savings account the amount in the account goes down. I'm not sure what else you're expecting.

You can take money (capital or interest or whatever) out of a flexible ISA. Flexibility lets you replace that money later in the same tax year without using up any of your £20k allowance.

masonic

MotoRacer said:

Hi . I’m new to this ! 

Have a 20kflexible cash isa in 24/25yr and a 20k in 25/26yr both with T212 and thought I could withdraw the money made each month to help me poor wages. 

But I see my cash isa pot going down when I do this !!!   Do all these flexible cash isa do this? Can anyone shed any other way to achieve the initial idea or is this not allowed ….does a chip isa do the same?

I don't think there is any savings account, ISA or not, where you can withdraw the money and keep it in the account too. That is getting close to the literal having your cake and eating it.

Organgrinder

slinger2 said:

Have you got 2 Cash ISAs with T212? I'm a bit surprised that's allowed.

When you take money out of a savings account the amount in the account goes down. I'm not sure what else you're expecting.

You can take money (capital or interest or whatever) out of a flexible ISA. Flexibility lets you replace that money later in the same tax year without using up any of your £20k allowance.

They are 2 different financial years 2024/25 and 2025/26

slinger2

Organgrinder said:

slinger2 said:

Have you got 2 Cash ISAs with T212? I'm a bit surprised that's allowed.

When you take money out of a savings account the amount in the account goes down. I'm not sure what else you're expecting.

You can take money (capital or interest or whatever) out of a flexible ISA. Flexibility lets you replace that money later in the same tax year without using up any of your £20k allowance.

They are 2 different financial years 2024/25 and 2025/26

There's no such thing as a 2024/25 ISA or a 2025/26 ISA, there's just ISAs. You can have money in an ISA from umpteen different tax years. A cash ISA is just a savings account with a few extra rules.

Organgrinder

slinger2 said:

Organgrinder said:

slinger2 said:

Have you got 2 Cash ISAs with T212? I'm a bit surprised that's allowed.

When you take money out of a savings account the amount in the account goes down. I'm not sure what else you're expecting.

You can take money (capital or interest or whatever) out of a flexible ISA. Flexibility lets you replace that money later in the same tax year without using up any of your £20k allowance.

They are 2 different financial years 2024/25 and 2025/26

There's no such thing as a 2024/25 ISA or a 2025/26 ISA, there's just ISAs. You can have money in an ISA from umpteen different tax years. A cash ISA is just a savings account with a few extra rules.

EDIT ***** Ignore the stuff below. I posted absolute nonsense!!! Thank you.

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 They can for example be different products eg a fixed rate cash ISA and a variable rate cash ISA. They are not just an ISA. Each year you can only open one cash ISA with a single provider as you know but can have cash ISA with many providers. However two ISAs with different conditions could have been opened in different tax years which is what the poster stated.

You stated you are surprised he had two cash ISAs with the same provider and was surprised it's allowed. Here a response from HMRC. Granted it doesn't say the same provider but you'll find it was perfectly possible to have 2 separate cash ISA s from the same provider.

slinger2

Organgrinder said:

slinger2 said:

Organgrinder said:

slinger2 said:

Have you got 2 Cash ISAs with T212? I'm a bit surprised that's allowed.

When you take money out of a savings account the amount in the account goes down. I'm not sure what else you're expecting.

You can take money (capital or interest or whatever) out of a flexible ISA. Flexibility lets you replace that money later in the same tax year without using up any of your £20k allowance.

They are 2 different financial years 2024/25 and 2025/26

There's no such thing as a 2024/25 ISA or a 2025/26 ISA, there's just ISAs. You can have money in an ISA from umpteen different tax years. A cash ISA is just a savings account with a few extra rules.

They can for example be different products eg a fixed rate cash ISA and a variable rate cash ISA. They are not just an ISA. Each year you can only pay into one cash ISA with a single provider as you know. However two ISAs with different conditions could have been opened in different tax years which is what the poster stated.

You stated you are surprised he had two cash ISAs with the same provider and was surprised it's allowed. Here a response from HMRC. Granted it doesn't say the same provider but you'll find it was perfectly possible to have 2 separate cash ISA s from the same provider.

You're way out of date I'm afraid. The rules changed in April 2024 and now you're allowed as many ISA as you want. You're only allowed a total of £20k of new money (each tax year) going into your ISAs but that can be split between umpteen different ISAs.

Organgrinder

Most certainly not out of date. My wording wasn't good. I meant you can only pay into one per provider. I have multiple cash ISAs opened this year. T212, moneybox etc.

In any event what I stated about having multiple cash ISAs per provider is correct. You can just open them in different tax years.

masonic

Organgrinder said:

Most certainly not out of date. My wording wasn't good. I meant you can only pay into one per provider. I have multiple cash ISAs opened this year. T212, moneybox etc.

In any event what I stated about having multiple cash ISAs per provider is correct. You can just open them in different tax years.

That isn't correct either. You are allowed to pay into two different ISAs with the same provider in the same tax year (for example two different fixed term ISAs). But T212 only offers one cash ISA, and you can only have one of them overall. Money from different tax years is combined in the same ISA.

slinger2

Organgrinder said:

Most certainly not out of date. My wording wasn't good. I meant you can only pay into one per provider. I have multiple cash ISAs opened this year. T212, moneybox etc.

In any event what I stated about having multiple cash ISAs per provider is correct. You can just open them in different tax years.

AFAIK that's not 100% true either. Providers can restrict you to one, but that's their choice, not an ISA rule.