Paying interest into a different account

Minxminnie

Sorry if this should be obvious!
Having recently retired (yay!), I want to use the interest that my savings will generate to supplement my monthly income, rather than leaving them to accrue in the savings account.
I'm looking at fixed rate ISAs which don't allow withdrawals (I will keep some rainy day money elsewhere). Will they normally allow me to nominate another account for interest to be paid into? If not, can I manually transfer interest without this counting as a withdrawal?
I have been reading their info closely but I haven't been able to find any info about how to access interest on a monthly basis.
Thanks to anyone who can help!

Saver73

I have a flexible ISA and savings with Ford Money where the monthly interest can be reinvested or transferred out to a different account.

clairec666

Have a look at https://moneyfactscompare.co.uk/isa/fixed-rate-isas/
Click on "full search" and search for monthly interest accounts
You'll have to look at each account individually - what you're looking for is under "Interest Payment", if it says "Interest can be paid away or compounded"

Looks like there are a few options that might be suitable for you

GrubbyGirl_2

There are some banks like UBL that have ISAs that will only pay the interest into another account

Minxminnie

clairec666 said:

Have a look at https://moneyfactscompare.co.uk/isa/fixed-rate-isas/
Click on "full search" and search for monthly interest accounts
You'll have to look at each account individually - what you're looking for is under "Interest Payment", if it says "Interest can be paid away or compounded"

Looks like there are a few options that might be suitable for you

Thank you so much - this gave me the info that I needed, and the correct terminology, which was what I didn't know! 

refluxer

Minxminnie said:

Will they normally allow me to nominate another account for interest to be paid into? If not, can I manually transfer interest without this counting as a withdrawal?

Just to add to the above - if the account doesn't allow monthly interest to be automatically paid away by the ISA provider, then withdrawing the interest yourself would count as a withdrawal and therefore incur a penalty with the majority* of fixed rate cash ISAs, so you'd obviously want to avoid that.

*One unusual exception to this is the Barclays 1 Year/18 Month Flexible Cash ISA from which you can make up to 3 withdrawals without incurring a penalty (max 10% of the balance each time) but they pay monthly interest away to an external account anyway, so you wouldn't need to use the 'flexible' nature of that account for withdrawing the interest.