ISA flexibility – FAQs

ISA flexibility allows you to take out money from your ISA account and replace that money within the same tax year without it counting towards your annual ISA allowance. The ISA allowance for the 2021/22 tax year is £20,000.

Here’s an example to explain this:

  • In April 2021, you had £10,000 in your ISA and a £20,000 ISA allowance for the 2021/22 tax year. So you had the option to put in up to a further £20,000 to your ISA before the end of the tax year.

    ISA flexibility allows you to dip in to what you already had in the account without it affecting your ISA allowance.

  • So if we look at your start-of-tax-year balance of £10,000: if you took out £5,000 in May 2021 and put in £5,000 in June 2021, then – as you’ve only replaced money you already had in your ISA – you’d still have your total ISA allowance of £20,000 left for the remainder of the tax year.

Please note: not all ISA products offer flexibility so check the terms and conditions before applying.

No, ISA flexibility only applies to what you’ve done with your ‘active’ (current tax year) ISA. If you open a new Nationwide ISA or transfer your ISA to a new manager, ISA flexibility does not apply to withdrawals made in previous years.

Yes, you can withdraw funds from current and previous years’ deposits and pay them back into a cash ISA with Nationwide (within that tax year), without it counting towards your current year's ISA allowance.

ISA flexibility is available across the Nationwide cash ISA product range. Because the Nationwide cash ISA is a portfolio ISA, you can take money out of one cash ISA product and place it in another in the same tax year and it won’t count towards your annual ISA allowance.

This is so long as the products you have allow this. Some cash ISA products limit how much you can take out or pay in, so it’s important to check your account terms and conditions.

For example:

  • Help to Buy: ISA has a limit on how much money you can put in each month. Any money you take out will affect how much you can save that month. Check your terms and conditions for details.
  • If you have a Fixed Rate ISA, you can only withdraw your money if you close your account or if you’ve come to the end of your term. If you close your account early, there will be an early-access charge.
  • With our Inheritance ISA: if you withdraw funds and wish to replace them in the same tax year, you can only replace these funds in another cash ISA product with us.

Please note: if you have a Junior ISA, a different set of rules apply as the child cannot access the money in the account until they are 18 years old. The government website about Junior ISAs offers full information. Nationwide no longer has a Junior ISA in its current product range.

Yes. If you transfer your current-year ISA to us, your current ISA manager will tell us how much more you can deposit within the tax year.

You will not be able to repay any money (under the rules of ISA flexibility) that is withdrawn after the switch, without it counting towards your annual ISA allowance.

Yes, any interest paid away to another savings or current account will count as a withdrawal from the ISA. This means that this money can be paid back into your ISA within the tax year without it counting towards your annual ISA allowance.

Yes – if you are living abroad and have an ISA that offers flexibility, you can replace any withdrawn ISA funds (during the tax year) without it counting towards your annual ISA allowance. However, you cannot add any new funds to your ISA.

If you close a Nationwide ISA without replacing all the funds you’ve withdrawn in that tax year, you can re-open the account with us (within the same tax year) and replace withdrawn funds without it counting towards your annual ISA allowance.

It is your responsibility to keep track of how much of your annual ISA allowance you have used but if you are unsure you can check on our Internet Bank.

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