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    • Stylehutz
    • By Stylehutz 11th Mar 17, 10:01 AM
    • 270Posts
    • 215Thanks
    ISA allowance query 2016-17
    • #1
    • 11th Mar 17, 10:01 AM
    ISA allowance query 2016-17 11th Mar 17 at 10:01 AM
    Wonder if someone might help as I am confused

    I am just enquiring the best way of using up my current isa allowance for this year as I am not going to be able to put anywhere near in the max allowance of 15,240

    I currently have 2 cash isa's built up from existing years with different providers

    ISA A paying 1% and ISA B paying 1.4%

    I cannot transfer in ISA A to ISA B as it doesn't allow transfers and I have only deposited 4,000 of this years allowance into ISA B. Both ISA's are also not flexible

    My question is, as ISA A doesnt allow to transfer to ISA B, Could I withdraw 5K from ISA A and then put it into ISA B for a better rate of interest?.
Page 1
    • masonic
    • By masonic 11th Mar 17, 10:20 AM
    • 9,191 Posts
    • 6,336 Thanks
    • #2
    • 11th Mar 17, 10:20 AM
    • #2
    • 11th Mar 17, 10:20 AM
    If you don't mind using up 5k of your ISA allowance, then you can do this. Alternatively, you could transfer ISA A to a flexible ISA and then flexibly withdraw the money to gain interest on it elsewhere.
    • bigadaj
    • By bigadaj 11th Mar 17, 10:24 AM
    • 10,814 Posts
    • 7,137 Thanks
    • #3
    • 11th Mar 17, 10:24 AM
    • #3
    • 11th Mar 17, 10:24 AM
    Yes, so long as what you have described is correct then simply take the money out of the old is a and deposit unit the new Isa before the beginning of April.

    You'll see a lot of advice not to take money out of an old is a because you lose the tax free status, however on your case then you won't fill the isa this year otherwise and it's a simple task of comparing the two rates.

    The allowance for next year obviously increase to 20k as well.

    There are also better rates available on current accounts and regular savers, though they need a bit more thought and work, check out the main site and the relevant threads in this board to see a bit more.
    • Stylehutz
    • By Stylehutz 11th Mar 17, 10:32 AM
    • 270 Posts
    • 215 Thanks
    • #4
    • 11th Mar 17, 10:32 AM
    • #4
    • 11th Mar 17, 10:32 AM
    Thank you both for the above reply. Question now answered
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