Taking out Cash ISA money from Trading 212 account to Easy Access savings advice

seriously

Asking for my relative, who is not working/not receiving any other income and 50 (i.e not receiving pension anytime soon). I helped them set up and transfer their previous years of Cash ISA to Trading 212 recently but the rate has dropped to 4.36%. As far as I know this is a flexible ISA so I was wondering if I can help them withdraw this amount circa £56k and put it into an easy access like Atom 4.75% until next year March, where they can then put it back into the ISA before the tax year ends? 

I've never done this before and it sounds relatively straight forward but before I do anything, I just want to make doubley sure! In the app, under the Cash ISA tab, there is a 'Deposit Funds' button, which then gives you the option of Instant Bank Transfer or just Bank Transfer. Is it as simple as just transferring and that's it?! If for example, they withdraw £56,123.45, will they then be able to deposit that exact amount in Mar 2026? 

I'm tech savvy enough to know what to do once the money is out etc but nervous about doing anything that could mess up their ISA allowance.  

Any help would be appreciated, thanks

QrizB

"Deposit funds" is for paying in.

You need the burger menu (bottom right) > "manage funds" > "withdrawal requests".

masonic

Yes, any money flexibly withdrawn will be added to the available allowance, allowing it to be replaced before the end of the tax year in the normal way. You could perhaps experiment with this using a smaller sum. A pound would suffice to get a feel for the steps involved.

Archerychick

I would probably leave a small amount (like £1) in the trading 212 account incase they close the account and then you can’t re add the funds. Currently they allow empty accounts to sit there, I have one after a transfer out but this would seem a sensible thing to do 

SaxOnTheBeach

AFAIK it's only funds that are paid in to the ISA during the current financial year that are flexible. If you take money out from previous years it cannot be replaced without affecting the ISA allowance.
You can make full or partial transfers to other ISAs. 

slinger2

SaxOnTheBeach said:

AFAIK it's only funds that are paid in to the ISA during the current financial year that are flexible. If you take money out from previous years it cannot be replaced without affecting the ISA allowance.
You can make full or partial transfers to other ISAs. 

That's simply not true.

What's important for a flexible ISA is that you need to REPLACE the money in the same tax year that you WITHDREW it (to avoid using your allowance). When the money originally went in doesn't matter.

clairec666

slinger2 said:

SaxOnTheBeach said:

AFAIK it's only funds that are paid in to the ISA during the current financial year that are flexible. If you take money out from previous years it cannot be replaced without affecting the ISA allowance.
You can make full or partial transfers to other ISAs. 

That's simply not true.

What's important for a flexible ISA is that you need to REPLACE the money in the same tax year that you WITHDREW it (to avoid using your allowance). When the money originally went in doesn't matter.

I agree with you, but Trading 212 disagree. In this tax year I have withdrawn £1000 of last years money, and replaced it, and they are counting it as this year's deposits. I am still fighting a battle over this with their customer services team.

Anecdotal evidence only, but it is generally possible to withdraw any amount of previous tax years' money and replace it within the same tax year.

seriously

QrizB said:

"Deposit funds" is for paying in.

You need the burger menu (bottom right) > "manage funds" > "withdrawal requests".

Ahh yes, I was wondering why it didn't look right, cheers!

masonic said:

Yes, any money flexibly withdrawn will be added to the available allowance, allowing it to be replaced before the end of the tax year in the normal way. You could perhaps experiment with this using a smaller sum. A pound would suffice to get a feel for the steps involved.

Archerychick said:

I would probably leave a small amount (like £1) in the trading 212 account incase they close the account and then you can’t re add the funds. Currently they allow empty accounts to sit there, I have one after a transfer out but this would seem a sensible thing to do 

Thank you two, this is very good advice. I will give it a go with a small amount, go from there and then leave a little in the account when we do withdraw it all. 

slinger2

clairec666 said:

slinger2 said:

SaxOnTheBeach said:

AFAIK it's only funds that are paid in to the ISA during the current financial year that are flexible. If you take money out from previous years it cannot be replaced without affecting the ISA allowance.
You can make full or partial transfers to other ISAs. 

That's simply not true.

What's important for a flexible ISA is that you need to REPLACE the money in the same tax year that you WITHDREW it (to avoid using your allowance). When the money originally went in doesn't matter.

I agree with you, but Trading 212 disagree. In this tax year I have withdrawn £1000 of last years money, and replaced it, and they are counting it as this year's deposits. I am still fighting a battle over this with their customer services team.

Anecdotal evidence only, but it is generally possible to withdraw any amount of previous tax years' money and replace it within the same tax year.

You can read the actual "flexible" regulation here, its called 5DDB: https://www.legislation.gov.uk/uksi/1998/1870/regulation/5DDB

"(5) Any replacement subscription is to be deemed to be a replacement first of any withdrawal of a cash amount made out of a previous years’ subscription." So if you "replace" money into the flexible ISA its deemed to be old money first (as long as some of that was withdrawn and has not been fully replaced).

clairec666

slinger2 said:

clairec666 said:

slinger2 said:

SaxOnTheBeach said:

AFAIK it's only funds that are paid in to the ISA during the current financial year that are flexible. If you take money out from previous years it cannot be replaced without affecting the ISA allowance.
You can make full or partial transfers to other ISAs. 

That's simply not true.

What's important for a flexible ISA is that you need to REPLACE the money in the same tax year that you WITHDREW it (to avoid using your allowance). When the money originally went in doesn't matter.

I agree with you, but Trading 212 disagree. In this tax year I have withdrawn £1000 of last years money, and replaced it, and they are counting it as this year's deposits. I am still fighting a battle over this with their customer services team.

Anecdotal evidence only, but it is generally possible to withdraw any amount of previous tax years' money and replace it within the same tax year.

You can read the actual "flexible" regulation here, its called 5DDB: https://www.legislation.gov.uk/uksi/1998/1870/regulation/5DDB

"(5) Any replacement subscription is to be deemed to be a replacement first of any withdrawal of a cash amount made out of a previous years’ subscription." So if you "replace" money into the flexible ISA its deemed to be old money first (as long as some of that was withdrawn and has not been fully replaced).

Thanks, I will send that to Trading 212 and hope it gets the message across

masonic

clairec666 said:

slinger2 said:

SaxOnTheBeach said:

AFAIK it's only funds that are paid in to the ISA during the current financial year that are flexible. If you take money out from previous years it cannot be replaced without affecting the ISA allowance.
You can make full or partial transfers to other ISAs. 

That's simply not true.

What's important for a flexible ISA is that you need to REPLACE the money in the same tax year that you WITHDREW it (to avoid using your allowance). When the money originally went in doesn't matter.

I agree with you, but Trading 212 disagree. In this tax year I have withdrawn £1000 of last years money, and replaced it, and they are counting it as this year's deposits. I am still fighting a battle over this with their customer services team.

Anecdotal evidence only, but it is generally possible to withdraw any amount of previous tax years' money and replace it within the same tax year.

It is a problem with T212's system that has been brought to their attention, so they should be aware of it and have corrected it for others.