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Banking Advice Needed Please
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Hi all, would really appreciate some advice on how I deal with a banking situation, I'm only 19 and so have absolutely no experience in this kind of thing:
I have a fixed term cash ISA account with the post office, it's a 24month account and I've not yet had the cash ISA opened for 24months however I need to take out some of the money within the ISA. I understand that I can make a request to withdraw via the telephone or I can send a written request however I don't want to take all of the money out..just some of it. However it says that partial withdrawels are not permitted during the fixed term, does this mean that I can't take just some of it out? I have to take the whole lot out? I really don't want to do this if possible.
I have another bank account seperate to this, but the money in my cash ISA is quite a substantial amount and I'm not sure exactly how it would work if I was to take all the money from the ISA and put it into my other account, can I just put more than £1,000 straight into my bank account?
I'm sorry if I don't make much sense, but this is all really new to me, so if anyone can go through the do's and don't I'd be very grateful
I have a fixed term cash ISA account with the post office, it's a 24month account and I've not yet had the cash ISA opened for 24months however I need to take out some of the money within the ISA. I understand that I can make a request to withdraw via the telephone or I can send a written request however I don't want to take all of the money out..just some of it. However it says that partial withdrawels are not permitted during the fixed term, does this mean that I can't take just some of it out? I have to take the whole lot out? I really don't want to do this if possible.
I have another bank account seperate to this, but the money in my cash ISA is quite a substantial amount and I'm not sure exactly how it would work if I was to take all the money from the ISA and put it into my other account, can I just put more than £1,000 straight into my bank account?
I'm sorry if I don't make much sense, but this is all really new to me, so if anyone can go through the do's and don't I'd be very grateful
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Not really sure what this question means! Generally, yes you can put any amount into a bank account if that is your question.
Which allowances am I looking at? I understand I'll loose the interest on my account and that I will receive a charge of 90days worth of interest on the account but am I looking at losing any more money other than that? (Sorry I really don't make much sense..I'm very new to all of this and it's the first time I've started banking on my own)
And thanks, that was basically all I meant, I do confuse myself at times lol.
Thanks so much for your help
Maybe it's different for the account you have, but the current Post Office ISA has a 180 day penalty on the 2 year version i.e.
"A Breakage Charge equal to 90 days loss of interest if you select a 1 year term, or 180 days loss of interest if you select a 2 or a 3 year term, will be applied if you close or transfer the ISA within the fixed rate term"
Okay, so I'm looking at a charge of approx half what I would have gained in interest in one year for closing the account but then that's all?
Yes, that appears to be the case. Don't know if you're interested, but if you need a new how for some of your ISA money, the best rate for instant access at the moment is Nat West with 2.89% (on-line only account).
Thanks so much, one final quesiton if you know, will I need to use a credit card to pay off the charge or can I arrange for it to be taken from the money I am intending to take out?
And thanks for the heads up with a different account, I'll definetly look into it in future
They'll just deduct it from your ISA balance when they close the account.
Grand Thank you so so much again, made my current situation a lot less stressful, thanks
Thanks for the advice, I've spoken to a person at the bank I'm with and subsequently arranged for my money to be transferred to my other account, so *touchwood* everything is fine
ISAs normally pay interest annually on the 5th of April, but when the account is closed they will calculate interest due up to the date of closure - minus the 180 day penalty charge.
So basically when you close it you will be paid about two weeks worth of interest on top of the current balance.