Your guide to flexible ISAs

In 2016, the UK government changed the ISA rules to allow ISA providers (including banks and building societies) to offer more flexibility to savers.

This change was optional, so not all ISA providers chose to make their accounts flexible. However, at Newbury Building Society, our Easy Access Cash ISA and our Notice Cash ISA are fully flexible. Please note that this does not apply to our Junior Cash ISA (JISA) because government rules do not allow money to be withdrawn until the child turns 18. 

So, what does having a flexible ISA mean for your savings?

ISA flexibility allows you to withdraw and then replace money from your current or previous years' subscriptions, without the replacement counting towards your annual ISA allowance of £20,000. You can withdraw and replace money as many times as you like as long as you don't go over your annual allowance

Replacement funds have to be paid into your ISA before the close of business on 5th April (the end of the tax year) following the withdrawal or it will count towards your annual allowance. Some examples are given in the image below.

How does this work in practice?

The example below shows how ISA flexibility would work if you had subscribed to a Cash ISA in the current tax year. In this scenario, you would not be able to open another ISA until the following tax year.

For more in-depth information on ISA flexibility and further examples, you can download our factsheet here.

There's still time to save this year with an ISA!

If you're interested in taking advantage of the tax-free savings allowance that an ISA provides before the end of the tax year on 5th April, we have Cash ISA accounts which could suit your circumstances. The accounts can be opened with just £50 by post or in one of our local branches.

To find out more, visit our ISA page, or book a savings review with one of our friendly Qualified Savings Advisers, who will be able to recommend the best products to suit your needs. Appointments can be undertaken in branch, in person, by video or by telephone. 

*Information correct as of January 2023.

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