Cash ISA interest

Can I just withdraw interest generated in my cash isa account to my other bank account? How to distinguish the interest from the other interest generated in that other bank account? I am very confused as I am told by banks that any amount withdrawn from an ISA which will not be tax-free anymore. Does it mean that I cannot withdraw any interest generated in my isa until I die? I only can either transfer my isa to some other provider or stay with the existing one in order to have tax free on the interest generated in my isa. Please confirm

Hi,

While your savings remain in your ISA, the interest they generate in the ISA, is tax free.  

You are free to use any withdrawal from your ISA as you see fit. If you withdraw cash from your ISA and place it in another non ISA account, then any interest the cash generates in that non ISA account, will be taxable. The withdrawal itself is not taxable, just the interest the withdrawal generates.

Thank you.

Hey! If I have a flexible cash ISA and my interest that is earned on the funds is credited to a different non-ISA account, will the interest still be tax free?

Hi Omatt 

You will need to contact the ISA provider for assistance. 

Thanks