Take Money Out of ISA

tsmiggy54

I Have a Ford Money Flexible ISA, with past years contributions in the account. No money as been added this year.

If i opened another ISA with another provider, could i remove the full £20k from my Ford Money ISA without the need of a transfer.

Thanks

eskbanker

You could withdraw £20K from Ford and deposit it into an ISA with another provider, but it would count as your 2026/27 contribution allowance.

Neil49

https://forums.moneysavingexpert.com/discussion/6663838/take-money-out-of-isa

If you want to retain the £20k as an ISA then you have to do it as a transfer. If you wish, you could transfer your existing ISA to bank A (to get a better interest rate) and still have the option to open a new ISA for 26/27 with bank B or simply use bank A for both purposes.

Withdrawing the money and then paying it back into a new one completely destroys the protection afforded to your existing ISA and makes no sense.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81960042#Comment_81960042

I don't get what you mean by 'completely destroying ISA protection'?

It's a perfectly valid thing to do under certain circumstances, e.g. someone who has £20K in an ISA and who won't have any additional money to pay in during the current year but who wishes to take advantage of the better rates available to new money only, rather than transfers. No idea if that applies to OP, and there are certainly plenty of scenarios where using up the current year allowance in this way wouldn't be a good idea, but simply blasting the idea as 'making no sense' doesn't seem appropriate without more knowledge of OP's circumstances…

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81960042#Comment_81960042

The OP states that it is a flexible Isa so they can withdraw these prior year subscriptions, replace them within the same tax year and keep the money in the wrapper.

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/81960042#Comment_81960042

That's wrong advice. You can take money out of a previous tax year's flexible ISA and put it into a new ISA this tax year, and that will count as this year's money.

You then have until the end of this tax year to replace some or all of the money back into the original flexible ISA to protect the ISA wrapper into future tax years

sausage_time

Recommended reading:

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

tsmiggy54

https://forums.moneysavingexpert.com/discussion/comment/81960055#Comment_81960055

My circumstances are that i would not wish to deposit any further monies during this year. So i would like to move 20k in order to get a better interest rate.

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/81962613#Comment_81962613

You can do that, but keep £1 in the Ford ISA in case that one becomes more competitive in the future and you want to put the money back