If I open an ISA account and then make a withdrawal within the year do I still qualify for the tax free interest?

Hi Bessel,

In most cases you would still be paid your tax free interest if you withdrew your money part way though the year. The only way you wouldn't get the interest is if you were penalised by your ISA provider for withdrawing your savings (typically if you have a fixed term or notice account).

This means that you would be paid tax free interest on the money you withdrew for the time it was in your ISA, and continue to earn tax free interest on any money left in the account.

So, it makes sense to check your accounts terms and conditions so you know exactly where you stand.

You also need to be aware that once you've paid in the full ISA allowance for that tax year if you withdraw the money you can't re-deposit it again.

Take a look at our guide: Cash ISA's a Beginners Guide for more information http://www.money.co.uk/article/1006711-cash-isas-a-beginners-guide.htm