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?
I’ve noted when you withdraw money from Cash ISA the withdrawal is taken from the invested amount (the annual allowance!) e.g.
£10,000 investment - grows to £10,100 over time (£100 interest accrued).
You withdraw £100 and the result is £9,900 investment! + £100 interest = £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 don’t 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 @DazzaG’s original question, I think there’s a misunderstanding about how the allowance works. So you deposit £10,000 - interest takes it to £10,100 - you withdraw £100 and that reduces the “used” portion of your allowance to £9,900.
This is because it’s 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 don’t allow this.
It means you still have a £10,000 balance, but only £9,900 of your ISA allowance is currently used (leaving £10,100 available). So you’re not affecting your original investment in any way.