Last year's ISA

Rich1976

Please can someone explain what happens to last year's ISA should I decide to pay into a new one with another provider?

The new provider does not accept transfers in and I undersatnd that I wouldn't be able to put any new money into the old one but am I allowed to withdraw money from last year's provider or does it have to remain untouched?

Many Thanks

debbie42

Rich1976 wrote: »

am I allowed to withdraw money from last year's provider or does it have to remain untouched?

You can withdraw cash or transfer it to a provider who accepts transfers in, or just leave it, or close it completely (losing the tax advantage). This is all assuming it doesn't have any t&c to the contrary, e.g. fixed one year rate etc.

10_66

Rich1976 wrote: »

Please can someone explain what happens to last year's ISA should I decide to pay into a new one with another provider?

The new provider does not accept transfers in and I undersatnd that I wouldn't be able to put any new money into the old one but am I allowed to withdraw money from last year's provider or does it have to remain untouched?

Many Thanks

You can generally add to existing ISA’s, unless they’re fixed when you usually can’t add to them. Should you wish to move your existing ISA elsewhere, ie for a more favourable interest rate, you can do this, without it affecting this year’s contribution. As you’re already aware, not all providers accept transfers in, so it’s a case of finding one that will. If you do want to transfer elsewhere, arrange this through the new provider, who will issue you with a transfer in form, which you complete and return with their application form. It’s best not to make any withdrawals (as opposed to transfers) from an ISA if you can help it, because once withdrawn, you cannot replace the withdrawn funds, so you lose the potential for earning future tax free interest on those funds.

Rich1976

debbie42 wrote: »

You can withdraw cash or transfer it to a provider who accepts transfers in, or just leave it, or close it completely (losing the tax advantage). This is all assuming it doesn't have any t&c to the contrary, e.g. fixed one year rate etc.

So basically then I can open a new ISA with a new provider but still withdraw some money from the old one if needs be?

debbie42

Rich1976 wrote: »

So basically then I can open a new ISA with a new provider but still withdraw some money from the old one if needs be?

Yes, that's the case.