Can we use a cash ISA account just like a normal 'easy access' savings account

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81964987#Comment_81964987

I have read articles where people have done this and had the interest paid into their normal bank account, but it was classed as income, so liable to income tax

Where did you read this, because it is just plain wrong?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81965414#Comment_81965414

There have been reports on here of Zopa erroneously reporting ISA interest to HMRC, resulting in a tax liability that needed to be corrected, perhaps that's the sort of thing that the poster has seen? But yes, as stated, it's nonsense…

XzavierWalnut

https://forums.moneysavingexpert.com/discussion/comment/81965433#Comment_81965433

I can't remember exactly, but I think it did have something to do with the bank itself reporting it to HMRC.

Umiamz

https://forums.moneysavingexpert.com/discussion/comment/81964515#Comment_81964515

Never had an issue transferring out from T212.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81967635#Comment_81967635

Many ISA providers don't have T212 on their list of accounts you can request online transfers from.

To which providers did you transfer? Knowing which ones work w/o issue would be helpful.

Umiamz

https://forums.moneysavingexpert.com/discussion/comment/81967701#Comment_81967701

That's because T212 isn't a member of the pay.uk system so there isn't an automatic 'short cut' for Cash ISA transfers. T212 can still transfer cash electronically to HSBC, though - it just requires a paper-based application to apply for the transfer.

I've transferred from T212 to HSBC in the past (about 12 months ago) and HSBC have just received my application form for another transfer. It might take some time with HSBC being inundated at the moment, but they've confirmed receipt so I should still get the Cashback offer, no matter how long it takes.

Also a family member made a Cash ISA transfer from T212 to NatWest last year and that went through in around 3 days.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81967709#Comment_81967709

It appears they are excluded from some providers' lists because they don't allocate a sort code and account number for their ISAs, which is a requirement for some.

VNX

https://forums.moneysavingexpert.com/discussion/comment/81965433#Comment_81965433

this happened to me, they reported ISA interest as taxable first I knew of it HMRC informed me of a big tax code change and it was a hassle sorting it all

LHW99

https://forums.moneysavingexpert.com/discussion/comment/81965000#Comment_81965000

At least some easy access cash ISA's offer a choice of monthly or annual interest, and whether you want the interest paid into the ISA or paid to another account. I am in process of transferring one to Vida savings and the pay-away and monthly interest options were on the application form.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81969160#Comment_81969160

Interest earned in an ISA remains tax free even if this interest is paid away automatically. Once this tax-free interest earns interest again, that interest will be taxable income.