Hi Guys letās say Iāve earned Ā£500 from my deposit but want the interest to spend. I therefore withdraw Ā£500 to my current account and spend it . Done. My online record will show Ā£19500 but at year end Ā£500 will be consolidated to my212 ac ready to add to transfer or whatever. Am I wrong??
Sorry, or pay the interest Ā£500 back in to 212 then you have Ā£20,500 in a cash isa going forward. Mods or fellow chatters will no doubt tell me if Iām wrong???
I think the reason your question hasnāt been answered is because youāre confused about the mechanic and the question isnāt exactly clear.
The current rate of a Cash ISA is 3.85% - so youāll end up with around Ā£770 interest if you put the money in on day dot and waited till the last day.
So letās just work with the full Ā£770 because itās easier. If you withdraw that it will be tax free, you can do as your wish.
Your ISA usage will drop to Ā£19230 for the year because your ISA is flexible and you can replace what you take out.
If you took the Ā£770 out after the new tax year starts youād be able to put in Ā£20,770 in the new tax year. (Ā£20k new limit + Ā£770 flexible withdrawal.)
If you do nothing youāll have Ā£20,770 and will be able to add another 20k in the new tax year.
I hope one of these solutions answers the question.
I got ISA here and with NatWest, your just asking to get the monthly interest you earn payed into a current account to live off? I done this with a Natwest ISA but had to go into the branch to set up, it gets paid into my current acc but not added to the total of the ISA, I donāt think you can set up a direct debit on this one you have to withdraw it yourself as its an online account.