TSB Dream Fund Prize Draw (September 2025)

the_mandarin

Eco_Miser said:

the_mandarin said:

winkowinko said:

Tempting to empty my flexible ISA for 24 hours, then pay it straight back in.

That would work only provided you have not maxed out your ISA allowance for the financial year.

Why? It's a flexible ISA.

If I understand the ISA rules correctly, if you:

1. Credit  £1000 to your Cash ISA
2. then withdraw/transfer £1000 from your Cash ISA
3. then again credit £1000 to your Cash ISA

This counts as a £2000 contribution into your Cash ISA for the financial year, leaving you with a further £18000 remaining from your annual ISA allowance.

The annual ISA allowance is not how much you hold in your ISA, but how much you have paid into your ISA in the financial year.

The only exception to the above is when you ask your new ISA provider to withdraw/transfer from your old ISA to your new ISA. If you yourself transfer £1000 from one ISA to another ISA, that £1000 is also deducted from your annual ISA allowance.

A flexible ISA is "flexible" to the extent that it will not impose any penalty for withdrawals, but I am fairly sure  its interest rate is also also "flexible" and not fixed.

I am open to correction if I have not understood this correctly, but I am fairly confident what I have said above is correct.

flaneurs_lobster

the_mandarin said:

I am open to correction if I have not understood this correctly, but I am fairly confident what I have said above is correct.

You're wrong I'm afraid when the ISA in question is flexible - allows for cash that has been paid into the ISA to be withdrawn, and as long as this cash is replaced into the same ISA (in the same financial year) then this replaced  cash does not increase your ISA subscription.

friolento

the_mandarin said:

Eco_Miser said:

the_mandarin said:

winkowinko said:

Tempting to empty my flexible ISA for 24 hours, then pay it straight back in.

That would work only provided you have not maxed out your ISA allowance for the financial year.

Why? It's a flexible ISA.

If I understand the ISA rules correctly, if you:

1. Credit  £1000 to your Cash ISA
2. then withdraw/transfer £1000 from your Cash ISA
3. then again credit £1000 to your Cash ISA

This counts as a £2000 contribution into your Cash ISA for the financial year, leaving you with a further £18000 remaining from your annual ISA allowance.

The annual ISA allowance is not how much you hold in your ISA, but how much you have paid into your ISA in the financial year.

The only exception to the above is when you ask your new ISA provider to withdraw/transfer from your old ISA to your new ISA. If you yourself transfer £1000 from one ISA to another ISA, that £1000 is also deducted from your annual ISA allowance.

A flexible ISA is "flexible" to the extent that it will not impose any penalty for withdrawals, but I am fairly sure  its interest rate is also also "flexible" and not fixed.

I am open to correction if I have not understood this correctly, but I am fairly confident what I have said above is correct.

You misunderstand. If you withdraw and redeposit the same amount of money in the same tax year, in a flexible ISA, your allowance is not affected by the redeposit (or by the withdrawal).  You do not need the help of any ISA provider to do the withdrawal and redeposit but even if for some reason you asked them, the same rules would apply. 

Whilst flexible ISAs are likely to all have variable interest rates, the 'flexible' is not concerned with interest rates.

For details, see https://www.moneysavingexpert.com/savings/flexible-isas/

the_mandarin

flaneurs_lobster said:

the_mandarin said:

I am open to correction if I have not understood this correctly, but I am fairly confident what I have said above is correct.

You're wrong I'm afraid when the ISA in question is flexible - allows for cash that has been paid into the ISA to be withdrawn, and as long as this cash is replaced into the same ISA (in the same financial year) then this replaced  cash does not increase your ISA subscription.

Thanks, glad I posted here and found out about this.

the_mandarin

friolento said:

the_mandarin said:

Eco_Miser said:

the_mandarin said:

winkowinko said:

Tempting to empty my flexible ISA for 24 hours, then pay it straight back in.

That would work only provided you have not maxed out your ISA allowance for the financial year.

Why? It's a flexible ISA.

If I understand the ISA rules correctly, if you:

1. Credit  £1000 to your Cash ISA
2. then withdraw/transfer £1000 from your Cash ISA
3. then again credit £1000 to your Cash ISA

This counts as a £2000 contribution into your Cash ISA for the financial year, leaving you with a further £18000 remaining from your annual ISA allowance.

The annual ISA allowance is not how much you hold in your ISA, but how much you have paid into your ISA in the financial year.

The only exception to the above is when you ask your new ISA provider to withdraw/transfer from your old ISA to your new ISA. If you yourself transfer £1000 from one ISA to another ISA, that £1000 is also deducted from your annual ISA allowance.

A flexible ISA is "flexible" to the extent that it will not impose any penalty for withdrawals, but I am fairly sure  its interest rate is also also "flexible" and not fixed.

I am open to correction if I have not understood this correctly, but I am fairly confident what I have said above is correct.

You misunderstand. If you withdraw and redeposit the same amount of money in the same tax year, in a flexible ISA, your allowance is not affected by the redeposit (or by the withdrawal).  You do not need the help of any ISA provider to do the withdrawal and redeposit but even if for some reason you asked them, the same rules would apply. 

Whilst flexible ISAs are likely to all have vaiable interest rates, the 'flexible' is not concerned with interest rates.

For details, see https://www.moneysavingexpert.com/savings/flexible-isas/

Thanks for the explanation, and for posting the link.

Zekko

T&Cs" state "All TSB personal current accounts are eligible.", so I assume this includes accounts like the 'Classic Plus Current Account' which doesn't appear to be available for customers any longer?

flaneurs_lobster

Zekko said:

T&Cs" state "All TSB personal current accounts are eligible.", so I assume this includes accounts like the 'Classic Plus Current Account' which doesn't appear to be available for customers any longer?

Seems pretty watertight to me, I'd assume so too.

hoc

A clever way for them to prop up the balance sheet for end of quarter reporting.

flaneurs_lobster

hoc said:

A clever way for them to prop up the balance sheet for end of quarter reporting.

Yep, and that prop is going to be shaved of my £5k at about 06:30am tomorrow.

danny13579

hoc said:

A clever way for them to prop up the balance sheet for end of quarter reporting.

Of course. You don't think they're doing it for our benefit, do you?