Skip to content
Guide to opening a savings account

Can you withdraw money from an ISA?

Withdrawing money from an ISA can be straightforward in some cases, and more complex in others. It all depends on what type of ISA you have. Learn more about ISA withdrawals with Sainsbury’s Bank.

How to withdraw money from an ISA

The steps you need to take for withdrawing money from an ISA change depending on the type of ISA you have. 

Variable Rate Cash ISA

If you have a Sainsbury’s Bank Variable Rate Cash ISA you can withdraw money as often as you like.  
You can make withdrawals by:

  • Electronic transfer via Sainsbury's Bank Online Banking 
  • Using our telephone service by calling us

You can transfer money from your Variable Rate Cash ISA account to a bank account held in your name. This will need to be with a bank or building society which is part of the UK clearing system. 

Note that when making a withdrawal, your money will lose its tax-free status unless you transfer your funds to another ISA account. If you do withdraw money from your variable Cash ISA, you can still only deposit money up to your annual ISA allowance limit of £20,000 in a tax year.

Fixed Rate Cash ISA

With a Fixed Rate Cash ISA from Sainsbury’s Bank, your money is held for the full term of the ISA. This means you won’t be able to withdraw your money unless you close the account early, which may incur an early closure charge. 

Details of early closure charge:

Fixed Rate ISA term Early Closure Charge  
1 year 90 days interest
2 years 150 days interest
3 years 210 days interest
4 years 240 days interest
5 years 270 days interest


Lifetime ISAs

You can withdraw from your Lifetime ISA at age 60+ if you’ve used the ISA to save for retirement, if you’re terminally ill with less than 12 months to live, or with no age limit when you buy your first home. If you want to withdraw your money before then, or transfer the funds to another type of ISA, you’ll have to pay a 25% withdrawal charge on the amount withdrawn, to mitigate the government bonus on the original savings.

Stocks and Shares ISAs

You can withdraw any available cash from your Stocks and Shares ISA at any time. However, selling investments or shares may take a few working days to settle before they’re available.

Innovative Finance ISA

You can withdraw funds from an Innovative Finance ISA, provided they’re not being used by a company when you want to access them. However, there can be a waiting period of 30 to 90 days, so if you think you might need access to your funds urgently this might not be the best investment for you.

For more information on what an ISA is and how it works, you can find it here.

How long does it take to cash in an ISA?

Again, this depends on the type of ISA you have. Instant Access Cash ISAs allow you to transfer funds from your ISA into a bank account in your name immediately, with the money arriving within minutes in most cases. 

Fixed Term Cash ISAs and Lifetime ISAs take longer for the funds to reach you. This is because in some instances you will need to close the account and may need to pay an early closure fee to receive the money, which can take some time for the bank to process.

Innovative Finance ISAs may take 30 to 90 days to complete the transfer, depending on whether your money is being used by a company when you apply to cash it in.

Cash withdrawals from a Stocks and Shares ISA can arrive in your account the next day, but if you need to sell any shares or investments it could take longer.

What happens when you withdraw from an ISA?

Different types of ISA’s have their own requirements when you withdraw.

Instant access ISAs allow you to make withdrawals whenever you want to.

If you have a flexible ISA, you can take money out and replace it within the same tax year without any implications.

If your ISA is not flexible, any money you withdraw and then redeposit during the same tax year will still count towards your annual ISA allowance.

Fixed Term Cash ISAs and Lifetime ISAs may require you to pay an early closure fee to receive the money which will vary depending on:

  • The terms and conditions of the ISA
  • How far you are from the end of the term
  • How much money you have saved in the account.

Instances in which you won’t be charged with a Lifetime ISA include:

  • Buying your first home
  • Withdrawing at age 60 or over

Withdrawals from an ISA don’t count as taxable income.

Frequently asked questions

What happens if I withdraw money from my ISA?

If you withdraw money from your ISA, the funds should be transferred to a bank account in your name.

Can I withdraw money from my ISA from a cash machine?

If you want to withdraw cash from your ISA, you will need to transfer the money from your ISA into a bank account in your name first.

Can you withdraw from an inactive ISA?

An inactive ISA is one that hasn’t been paid into for a full tax year. You can still withdraw money from an inactive cash ISA if you need the funds.