Withdrawals from an ISA

There are many things you can do with an ISA, there is plenty of freedom and you can even leave your current provider for a better, more competitive rate or service without losing your tax free status.

Withdrawals follow these same principles, however, with most things regarding finance, you may find specific rules against what you would like to do. For example, if you would like to withdraw from a cash ISA, particularly those with fixed ISA rates, you can be subject to a penalty fee, and even a loss of interest. You will be asked to give your provider some notice before you make a withdrawal.

However, if your money is in an account which you can access, you can get what you need whenever you need it. You are also able to sell units or shares in your funds whenever you need as well.

The one drawback is that, on any funds you withdraw, you will lose your tax free status. This is why its best to keep your funds in your investment accounts and use other funds before you tap into these.