I would like to be able to take the interest accrued (ONLY the interest) from my Cash ISA periodically. Has anyone found a way of doing this?
Iāve noted when you withdraw money from Cash ISA the withdrawal is taken from the invested amount (the annual allowance!) e.g.
Ā£10,000 investment - grows to Ā£10,100 over time (Ā£100 interest accrued).
You withdraw Ā£100 and the result is Ā£9,900 investment! + Ā£100 interest = Ā£10,000 but the money comes from the base investment/annual allowance.
There should be a way of receiving the accrued interest without affecting the base investment?
Darrel I would also like to know how to do this. I donāt understand why Scrooge would respond as he did below. Your question is very valid and the whole thing around interest transfer to a personal account is confusing. Where is is interest held and how do I access it. This is not readily explained.
@dejm Interest is accrued daily and paid monthly into your Cash ISA, which you can then withdraw if you wish (under Manage Funds in the menu).
On @DazzaGās original question, I think thereās a misunderstanding about how the allowance works. So you deposit Ā£10,000 - interest takes it to Ā£10,100 - you withdraw Ā£100 and that reduces the āusedā portion of your allowance to Ā£9,900.
This is because itās a flexible ISA, so when you withdraw money, it frees up that portion of your allowance, letting you put it back in within the same tax year. Traditional ISAs donāt allow this.
It means you still have a Ā£10,000 balance, but only Ā£9,900 of your ISA allowance is currently used (leaving Ā£10,100 available). So youāre not affecting your original investment in any way.
Sorry Scrooge_McCodf but It isnāt basic Cash ISA behaviour so please stop being so dismissive. There are a lot of posts on here relating to the cash ISA interest payments and so I would guess itās not that clear. Certainly not to me. Even in the app when you click on the little (i) symbol it say pending interest is interest that has not yet been PAID. But where exactly is it before and after being paid?
Pending interest is just showing you the background count-up prior to actual payment.
(Most providers donāt do that - your accumulated interest just appears on whatever day itās paid)
When itās paid itās added to the account.
The mechanics of withdrawing your interest are exactly as @JMH explained above.