Hi Guys let’s say I’ve earned £500 from my deposit but want the interest to spend. I therefore withdraw £500 to my current account and spend it . Done. My online record will show £19500 but at year end £500 will be consolidated to my212 ac ready to add to transfer or whatever. Am I wrong??
Sorry, or pay the interest £500 back in to 212 then you have £20,500 in a cash isa going forward. Mods or fellow chatters will no doubt tell me if I’m wrong???
I think the reason your question hasn’t been answered is because you’re confused about the mechanic and the question isn’t exactly clear.
The current rate of a Cash ISA is 3.85% - so you’ll end up with around £770 interest if you put the money in on day dot and waited till the last day.
So let’s just work with the full £770 because it’s easier. If you withdraw that it will be tax free, you can do as your wish.
Your ISA usage will drop to £19230 for the year because your ISA is flexible and you can replace what you take out.
If you took the £770 out after the new tax year starts you’d be able to put in £20,770 in the new tax year. (£20k new limit + £770 flexible withdrawal.)
If you do nothing you’ll have £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 don’t think you can set up a direct debit on this one you have to withdraw it yourself as its an online account.