ISA Maturity Options

Hunnie1977

 my ISA is due to mature in October. I have two questions regarding the options available:

1. Am I able to withdraw only the interest earned, and also transfer part of the balance to my son’s account, while leaving the remaining funds invested?

2. Alternatively, would it be more beneficial to renew the ISA for another one or two years, and what are the current rates for these options?

I would appreciate your guidance so that I can make an informed decision.

As been asked to move moines to saving account some assitnace on what to do next would be great full 

optiprime8

1. Yes, you can choose how much of your ISA to be withdrawn to you nominated bank account and how much to be moved to a new ISA
2. See the forum post “Cash ISAs: The Best Currently Available List” for an updated list of the best rates from different providers. Your current provide should tell you what their rates are in your maturity pack. 

As to whether you should save in a cash ISA compared to a savings account will depend on what tax rate you pay and your total earnings from savings, it’s explained here: https://www.moneysavingexpert.com/savings/best-cash-isa/#faqs

Hunnie1977

i have found out was on 5.6 % on my fixed isa which matures in 2 week need to ask sorry for reppeing my self say leave 6k in issa and bal easy acces account  which bank offer the is and not pentlyes ?

refluxer

For your lump sum withdrawal, you'll need to transfer it into an easy access cash ISA first in order to make a withdrawal without paying a penalty.

Most fixed rate cash ISAs will have an option for transferring to an easy access ISA at maturity (either an easy access cash ISA or a 'maturity' equivalent account) but you need to check your maturity options to see what your ISA provider is offering. If they only have the option to transfer into another fixed rate ISA, then you'll have to transfer it away to a different provider who does offer an easy access ISA account.

Once it is in an account you can withdraw from with penalty, you'll be able to make a withdrawal. Just note that this money will be lost from the ISA 'system' and the only way to pay it back in without it counting towards your 2025-26 £20k ISA allowance will be if the ISA is 'flexible' (this would have to be done before the end of this tax year).

If you then want to withdraw the interest monthly from the remainder going forward, you can either leave it in the easy access ISA account (and withdraw the interest yourself without penalty each month) or, if you want to put the money into another fixed rate ISA, you'll need to find a provider who specifically states that monthly interest can be paid away automatically by them every month, otherwise doing this yourself will count as a withdrawal and you'll have to pay a penalty each time which you definitely want to avoid.

You can filter the fixed rate cash ISA lists on Moneyfactscompare by those who pay monthly (do a 'Full search') but I can't see an option for filtering by those who allow this to be paid away, so you might have to start at the top of the list and check the T&Cs for each account, unfortunately. I don't know for sure, but I suspect that not many fixed rate cash ISA providers will offer this option.

Hunnie1977 said:

As been asked to move moines to saving account

Who has asked you to do this ? Just be wary of scammers if this is someone unknown to you.