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30th
Oct 2020
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Flexible ISAs: What You Need to Know

Flexible ISAs: What You Need to Know

ISAs are a great way to put money aside while keeping it safe from the tax man’s hands; every British citizen is entitled to a yearly allowance of £20,000 to keep in these tax-efficient ISA accounts. But with quite a few having strict terms, how flexible can ISAs be? We’ve put together a blog on what you need to know about Flexible ISAs, to answer your pressing questions. 

What is a flexible ISA?

A flexible ISA is a modification of an ISA; it was originally initiated as a policy on the 6th April 2016 (so the beginning of that tax year).

This modification allows for the introduction and application of flexible features onto an ISA account while keeping the benefits of a traditional ISA; and these can be applied to an ISA account whether it was opened before or after 06/04/16.

It gives various advantages to people who opt for this form of ISA – especially when it comes to having access to your money.

The flexible ISA allows for an individual to withdraw money without any limit from the account. The money can be deposited at irregular intervals without any limit on the deposit.

What are the limits?

While this is a great option for an ISA, there are some limitations. These include:

  • This it is not carried by all providers that offer ISAs.
  • The money deposited to replace that which was withdrawn will not add up to or contribute to that of the annual subscription.
  • The only instance where that is possible is when the money deposited for the repayments exceeds that which was withdrawn, within the same tax year.
  • The money that is withdrawn from the account, though without a limit on withdrawal has to be repaid within the same tax year as that which it was withdrawn.
  • A flexible ISA account is not transferrable from one credit institution to another. For that reason, if the money that was withdrawn on a certain account is not repaid before opening another account, the money cannot be repaid into the new account.
  • In the event of a transfer, the new credit institution is not informed about the funds to be paid. Instead, the information passed on concerns the value of money that is left within the account, and that which is accessible for withdrawal.
  • The flexible ISA feature only works for withdrawals and not deposits.

What are the benefits?

Having looked at the limitations, it’s important to address the benefits to – the reasons why you should consider a flexible ISA account:

  • A flexible ISA allows for an individual to use the money that they have saved instead of their allowance on the account.
  • The unlimited withdrawal is very beneficial to individuals especially concerning situations of emergency.
  • By using flexible ISA, an individual retains his/her tax benefits and is still able to use their savings.

How do I get one?

The flexible ISA is only accessible to credit institutions that have agreed on it.

You need to make sure your chosen ISA provider supports this, if this is the ISA type you want.

Our page on Flexible ISAs contains links to providers who currently support this – so you can read more about this here. 

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,000+ Funds
  • Invest From: £50pm

Why we like it: Invest from as little as £50 a month or with a £1,000 lump sum. Investment choice from over 100 fund providers, giving you access to 2,000+ funds. One low-cost service fee of 0.35%*. Great service – from investment guidance on website through to UK-based phones team. PathFinder, Select 50, Investment Finder - investing tools for beginners to advanced investors. 24/7 access via online Account Management system.

* depending on how much you have invested

Special offer:

Invest and get £25 cashback » 

Build your savings with an ISA and receive £25. Exclusions, T&Cs apply.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from Hargreaves Lansdown

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,500+ Funds
  • Invest From: £25 pm

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from Interactive Investor

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 40,000+ UK and global investments
  • Invest From: Any Lump Sum or £25 a month

Special Offers:
£100 Cashback if you transfer in any ISA worth more than £20,000
Open an ISA, Trading Account or Sipp and you'll get £100 of free trades to buy or sell any investment (new customers only)
Terms apply

Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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The tech industry has been booming for the past fifteen years; and it seems to be a rollercoaster that only goes up. The tech bubble has yet to burst, with companies coming out with more and more technological developments and consumer demand is certainly not slowing down. So, for the tech-savvy investor who wants to put their pennies behind this strong growing industry, we’ve put together our top three picks for Technology Stocks and Shares ISAs. 

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