NON flexible ISA ???

Twatonabike

I was about to transfer from my current cash ISA (3.72%) into the Moneybox Cash ISA @ 4.32% (bonus) as advertised on here - But it says   "Is not a flexible ISA"    What does this mean exactly? - Short answers / Examples greatly appreciated -

ColdIron

Worth a read

https://www.moneysavingexpert.com/savings/flexible-isas

Twatonabike

ColdIron said:

Worth a read

https://www.moneysavingexpert.com/savings/flexible-isas

doesn't really explain the difference - Still not sure exactly what a NON Flexible ISA means 

Middle_of_the_Road

Twatonabike said:

I was about to transfer from my current cash ISA (3.72%) into the Moneybox Cash ISA @ 4.32% (bonus) as advertised on here - But it says   "Is not a flexible ISA"    What does this mean exactly? - Short answers / Examples greatly appreciated -

If you were to withdraw from a non flexible ISA and then wanted to replace that money, that replacement would count towards your £20K annual allowance.

For example:
You have £20K in your ISA and withdraw £1000 you can't replace that £1K in the same tax year.

If you have £10 in that ISA you could replace it but your remaining allowance would only be £9k

clairec666

Twatonabike said:

ColdIron said:

Worth a read

https://www.moneysavingexpert.com/savings/flexible-isas

doesn't really explain the difference - Still not sure exactly what a NON Flexible ISA means 

It's the opposite of a flexible ISA. It means that if you withdraw any money during the tax year, and return it to the ISA, it will eat into your £20000 yearly allowance (i.e. is counted as "new money").

Sea_Shell

Can you pay it in elsewhere?

Eg deposit £20k in a non flexible ISA, withdraw £5000, then open a flexible ISA elsewhere and deposit the £5k.

Does the flexible (or not) bit only apply to the ISA the withdrawal was from?

saajan_12

Twatonabike said:

I was about to transfer from my current cash ISA (3.72%) into the Moneybox Cash ISA @ 4.32% (bonus) as advertised on here - But it says   "Is not a flexible ISA"    What does this mean exactly? - Short answers / Examples greatly appreciated -

If it was flexible then you could transfer the money out from ISA to a normal account, spend it, do whatever, earn the money back, and then re-deposit that amount into the ISA. The re-deposited money wouldn't use up more of your allowance. 

Since it is NOT flexible, you can't do that, or if you did then the re-deposit would count as new money. 

Eg say there's 21k from last year including interest and this year, you withdrew 15k, did whatever with it then re-deposited it later this year. In a flexible ISA, you can do that while preserving your 20k allowance this year. In a non-flexible ISA you use up 15k of this year's allowance so you can only deposit another 5k. 

In both cases, you can still transfer from one ISA into another if you get the banks to do it for you rather than diy. 

Twatonabike

Ok thanks guys - I will have to think about long term plans - I really appreciate your input - 

Albermarle

Sea_Shell said:

Can you pay it in elsewhere?

Eg deposit £20k in a non flexible ISA, withdraw £5000, then open a flexible ISA elsewhere and deposit the £5k.

Does the flexible (or not) bit only apply to the ISA the withdrawal was from?

No, because you have used up your max £20K ISA allowance .

Twatonabike

Albermarle said:

Sea_Shell said:

Can you pay it in elsewhere?

Eg deposit £20k in a non flexible ISA, withdraw £5000, then open a flexible ISA elsewhere and deposit the £5k.

Does the flexible (or not) bit only apply to the ISA the withdrawal was from?

No, because you have used up your max £20K ISA allowance .

Are we sure about this ?? - is this 100% correct - ???? - 

Middle_of_the_Road

Twatonabike said:

Albermarle said:

Sea_Shell said:

Can you pay it in elsewhere?

Eg deposit £20k in a non flexible ISA, withdraw £5000, then open a flexible ISA elsewhere and deposit the £5k.

Does the flexible (or not) bit only apply to the ISA the withdrawal was from?

No, because you have used up your max £20K ISA allowance .

Are we sure about this ?? - is this 100% correct - ???? - 

Any amounts withdrawn from a non-flexibl ISA will lose their tax free status. Therefore paying it into another ISA (flexible or not) will count as new money.