Can I transfer my ISA if I am using my flexible ISA allowance?

If you transfer all of your ISA to another provider, you won’t be able to repay the funds you have withdrawn under flexible ISA rules. If you only transfer part of your ISA, you may be able to replace the withdrawn funds in your original ISA, but not the one you are transferring to.

Thanks to the personal savings allowance, all basic rate taxpayers can now earn up to £1,000 a year tax-free on any interest from savings and current accounts. Higher rate taxpayers can earn up to £500, while additional rate taxpayers have £0 personal savings allowance. This means that if you’re a basic or higher rate taxpayer, you might feel it’s not worth investing in a tax-efficient ISA. However, bear in mind that interest rates have risen recently, so those that have a lot in savings could be closer to reaching their personal savings allowance limit – in which case, saving in an ISA could make good financial sense.

Flexible ISAs: What they are and how they work

An ISA is a tax-efficient way to save money. Each tax year, you're given an annual ISA allowance (or a limit to the amount you can pay into an ISA). For the 2025/2026 tax year, this stands at £20,000. When comparing ISA accounts, you might notice that some are termed "flexible". This guide explains what flexible ISAs mean and why they can be useful.

Easy access cash ISAsUp to 0%

Fixed-rate cash ISAsUp to 4.3%

Notice cash ISAsUp to 0%

Is my money safe?

The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £120,000 you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.

Best flexible cash ISA rates

Table: sorted by interest rate, promoted deals first

10 of 173 results

Rate	Minimum investment	Interest paid	Withdrawals	Deposit protection	Incentive	Table product description
eToro Cash ISA with Boosted Rate	4.67% AER variable (includes a 0.8% bonus )	£500	Monthly	Up to 3 free withdrawals without notice	Open via: website, mobile app.	4.67% AER variable for 12 months, inc 0.80% AER 12 month bonus on top of standard saver rate. The Cash ISA interest rate is variable and linked to the secure and protected Qualifying Money Market Fund (QMMF) your money is held in. Boosted rate calculated daily and paid after 12 months. To maintain the bonus interest rate, keep a minimum of £500 and limit withdrawals to three a year. The Cash ISA is powered by Moneyfarm. T&Cs apply. More info You will be required to open an eToro investment account, if you choose to invest, your capital is at risk.	Go to site More info Compare product selectionCompare	loading
Trading 212 Cash ISA	3.85% AER variable	£1	Monthly	Easy access	Open via: website.	Go to site More info Compare product selectionCompare	loading
Yorkshire Building Society Single Access e-ISA	4% AER variable	£1	Annually	Up to 1 free withdrawals without notice	Open via: website.	Go to site More info Compare product selectionCompare	loading
Moneyfarm Cash ISA	4.47% AER variable (includes a 0.6% bonus )	£500	Daily	Up to 3 free withdrawals without notice	Open via: website, mobile app.	While Moneyfarm isn't a bank, your cash is securely held with trusted partners, authorised banks or Qualified Money Market Funds, ensuring it's in safe hands. Variable rate correct as at 04/07/25. Subject to conditions and ISA rules.	Go to site More info Compare product selectionCompare	loading
Vanquis Bank Ltd Triple Access Cash ISA (Issue 3)	4.25% AER variable	£1,000	Annually	Up to 3 free withdrawals without notice	Open via: website.	Go to site More info Compare product selectionCompare	loading
Vanquis Bank Ltd 1 Year Fixed Rate Cash ISA Monthly	4.25% AER fixed for 1 year	£1,000	Monthly	Easy access subject to 90 days' loss of interest	Open via: website.	Go to site More info Compare product selectionCompare	loading
Vanquis Bank Ltd 1 Year Fixed Rate Cash ISA	4.25% AER fixed for 1 year	£1,000	Annually	Easy access subject to 90 days' loss of interest	Open via: website.	Go to site More info Compare product selectionCompare	loading
Vanquis Bank Ltd Triple Access Cash ISA (Issue 3) Monthly	4.25% AER variable	£1,000	Monthly	Up to 3 free withdrawals without notice	Open via: website.	Go to site More info Compare product selectionCompare	loading
Principality Building Society Online Bonus 5 Access Cash ISA Issue 5	4.2% AER variable (includes a 1.7% bonus )	£1	Annually	Up to 5 free withdrawals without notice	Open via: website.	Go to site More info Compare product selectionCompare	loading
Vanquis Bank Ltd 2 Year Fixed Rate Cash ISA Monthly	4.15% AER fixed for 2 years	£1,000	Monthly	Easy access subject to 180 days' loss of interest	Open via: website.	Go to site More info Compare product selectionCompare	loading

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Showing 10 of 173 results

What is a flexible ISA?

A flexible ISA is an ISA that lets you withdraw funds and pay them back into your ISA account in the same tax year, without affecting your annual ISA allowance. This can apply to cash ISAs, stocks and shares ISAs and innovative finance ISAs, but not all providers offer flexible ISAs so you’ll need to check.

A flexible ISA means you won’t be penalised if you access some of your ISA funds.

How does a flexible ISA work?

Let’s say you’ve paid £20,000 into a flexible cash ISA, using your full ISA allowance for that year. In the same tax year, you decide to withdraw £10,000. Because the ISA is flexible, the withdrawal doesn’t affect your annual allowance and you can repay the £10,000 before the end of the tax year.

Once you’ve made your withdrawal from a flexible ISA, you can replace the money in the same or any other ISA, including a stocks and shares or innovative finance ISA.

By contrast, if the ISA was not flexible and you’d paid in £20,000 but withdrawn £10,000, you wouldn’t be able to repay the £10,000 as this would mean you’d have exceeded your annual allowance.

Do I need a flexible ISA?

Ultimately, whether you need a flexible ISA is up to you. But if you think you could get close to using up your £20,000 annual ISA allowance and you plan to make withdrawals, it’s well worth choosing a flexible ISA.

On the other hand, if you know you won’t get close to reaching your annual ISA limit or you don’t plan to make any withdrawals, choosing a flexible ISA won’t be so important.

Pros and cons of flexible ISAs

Pros

Enables you to withdraw funds and replace them within the same tax year without impacting your annual ISA allowance
You can also withdraw funds from a cash ISA and replace them in a stocks and shares or innovative finance ISA
Good option if you need to access funds in an emergency

Cons

Not all ISAs are flexible
Flexible ISAs might not necessarily offer the best rates

Bottom line

Choosing a flexible ISA could be a great option if you’re worried that you will get close to using your full ISA allowance and might need to make some withdrawals. Just remember that not all providers offer flexible ISAs and it’s important to check how competitive the account is before making a decision.

Frequently asked questions

Thanks to the personal savings allowance, all basic rate taxpayers can now earn up to £1,000 a year tax-free on any interest from savings and current accounts. Higher rate taxpayers can earn up to £500, while additional rate taxpayers have £0 personal savings allowance.
This means that if you’re a basic or higher rate taxpayer, you might feel it’s not worth investing in a tax-efficient ISA. However, bear in mind that interest rates have risen recently, so those that have a lot in savings could be closer to reaching their personal savings allowance limit – in which case, saving in an ISA could make good financial sense.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Defaqto. In other cases, Finder has sourced data directly from providers.

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Written by

Rachel Wait

Writer

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio

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