Flexible ISAs explained | What is a flexible ISA?

Flexible ISAs explained | What is a flexible ISA? | YBS

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At a glance:

Flexible ISAs allow you to save tax-free, so you don’t pay income tax on your interest.

With a flexible ISA you can move money in and out of your account.

You can also replace money you’ve taken out that same tax year, without using your ISA allowance with a flexible ISA.

How does a flexible isa work?

Let’s start with some ISA basics.

You have an annual ISA allowance each tax year.

A tax year runs from 6 April one year to 5 April the following year.

For the 2024/25 tax year, you can save up to £20,000 in ISAs.

If you take money out of a flexible ISA, you can pay it back in. It will not use your ISA allowance if you pay it back, in the same tax year that you took it out.

Flexible ISA example

You save £20,000 in your ISA in a tax year.

You take out £5,000.

You can put £5,000 back into your ISA, before the end of the tax year.

How a flexible ISA is different to a non-flexible ISA

A non-flexible ISA means you will not be able to withdraw money then put it back without using your ISA allowance.

So, if you want to move money in and out of your ISA, a flexible ISA might be a good choice for you.

Do Yorkshire Building Society offer flexible ISAs?

Yes, we do! All our easy access Cash ISAs are flexible.

How to transfer an ISA to YBS

If you don’t already have an ISA with YBS, you’ll need to open one first.

If you manage your account online, you can log in to arrange the transfer. If you manage your account in branch or by post, you need to download a form and send it back to us.

You must use the ISA transfer process – not withdraw money and pay it into another ISA – or risk losing the tax-free status of your money.

Learn more about ISA transfers

Make sure you use the ISA transfer process to keep your money tax-free. It does not use your ISA allowance so there is no limit on how much you can transfer.

How to transfer an ISA to YBS