Ian Hopkins
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RE: Cash ISA Question
I have opened a Cash ISA as my interest from my savings were in danger of being TAX'd. I thought that as this Cash ISA earns interest free of tax, that I could withdraw that interest monthly as a legitimate income without paying TAX on it. However, I've misunderstood. The interest earned is not exclusively withdrawable. Any withdrawal removes the same sum from my ISA allowance. For example: I withdrew £106.59 from the account(Trading 212 Cash ISA) which had been the interest the account had earned in 5 weeks and my ISA allowance fell by the same amount. I queried this with the bank and was simply advised that it was free to withdraw and put back in in the financial year ending April 2025. It took a while to be finally told that I could not withdraw my interest alone not even by year end. My question is: Is this a policy that all banks offering ISA products have to adhere to, perhaps to comply with identifying taxable and non taxable income, or something else and there is something wrong. Your advice would be greatly appreciated.