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- You can usually withdraw money from an ISA at any time and withdrawals are typically tax-free, but the rules vary depending on the type of ISA
- Stocks and shares ISAs allow anytime withdrawals (subject to selling investments), while Lifetime ISAs may incur a 25% penalty if withdrawn before age 60 (unless for a first home or exceptional circumstances)
- Cash ISAs may restrict access or apply penalties depending on the account type, and Junior ISAs cannot be accessed until the child turns 18 (except in exceptional cases)
- Withdrawals that are later paid back into the ISA can affect your annual ISA allowance unless the ISA is flexible
- The processing time for cash withdrawals is 1–3 working days for AJ Bell Stocks and shares ISAs, but the time varies for other ISAs depending on account type and reason for withdrawal
Can you withdraw money from an ISA?
Yes, you can usually withdraw money from an ISA at any time and withdrawals are normally tax-free. However, the rules depend on the type of ISA you have.
Withdrawing from different types of ISAs
Here’s how withdrawals from ISA accounts work.
Stocks and shares ISA withdrawals
You can withdraw cash from your AJ Bell Stocks and shares ISA at any time, and there’s no limit to how much you can take out of an ISA tax-free
If you want to make a withdrawal, you’ll need to make cash available. This might mean selling some of your investments.
The AJ Bell ISA is not a flexible ISA, so money you take out of your ISA cannot be paid back in if you’ve already reached your annual ISA allowance for the tax year.
Find out how to set up a regular withdrawal from a Stocks and shares ISA.
Lifetime ISA withdrawals
Government rules mean a 25% penalty charge will apply if you withdraw money before age 60 from a Lifetime ISA, except to purchase your first eligible home. This may mean you get back less from your Lifetime ISA than you put in, especially in the short term.
You can withdraw all the money in your Lifetime ISA account without the 25% government withdrawal charge if you have a terminal illness.
Read more about Lifetime ISA withdrawals.
Cash ISA withdrawals
Although some Cash ISAs are easy to access, some accounts might limit the number of withdrawals you can make in a year without losing interest.
Fixed-rate Cash ISAs don’t usually allow withdrawals until the end of the fixed term (known as maturity). Accounts that will let you access your cash might require you to close the account and deduct an interest penalty. You should check with your provider what rules will apply.
Junior ISA withdrawals
Junior ISAs are tax-efficient accounts that are set up and managed by a parent or legal guardian. The child cannot access the money until they turn 18. The person managing the account can take money out if the child becomes terminally ill.
Learn more about making withdrawals from a Junior ISA.
Do you pay tax when you withdraw from an ISA?
No, you don’t pay tax on ISA withdrawals and there’s no fee to withdraw cash from your AJ Bell Stocks and shares ISA.
Lifetime ISA and Junior ISA withdrawals have some extra rules on withdrawals.
How ISA withdrawals affect your ISA allowance
If your ISA is ‘flexible’, you can take out cash then put it back in during the same tax year without reducing your current year’s allowance.
The AJ Bell Stocks and shares ISA is not a flexible ISA, so any money you pay back in will count towards your ISA allowance for the current tax year.
We’re not just one of the UK’s largest and best regarded investment platforms, we’re listed on the FTSE 250, we’re regulated by the Financial Conduct Authority (FCA), oh, and we’re the only investment platform to be a Which? Recommended Provider eight years running.
Find the right AJ Bell ISA for you.
How to withdraw money from your ISA
Requesting a withdrawal from your AJ Bell ISA is easy:
Log into your account
Select ‘Withdrawals’ from the menu
If you want to keep your account open, you’ll need to maintain a balance of at least £100.
How long does it take to withdraw money from an ISA?
| Account type | How long it takes to withdraw cash from an ISA |
|---|---|
| AJ Bell Stocks and shares ISA | Withdrawing cash from your Stocks and shares ISA:
|
| AJ Bell Lifetime ISA | Withdrawing cash from your Lifetime ISA to buy your first home:
Withdrawing cash from your Lifetime ISA if you’re terminally ill: Withdrawing cash from your Lifetime ISA for any other reason even though you know you’ll pay the withdrawal penalty:
|
| AJ Bell Junior ISA | Withdrawing cash from your Junior ISA once it has been converted to a Stocks and shares ISA when you’re 18 or over:
Withdrawing cash from a Junior ISA before the child is 18 (allowed only if the child becomes terminally ill, or passes away before age 18): |
Withdrawing cash from your ISA is usually quick but because we authenticate all withdrawal requests, some payments can sometimes take a little longer than stated to arrive in your bank account.
Our ISA withdrawal timeframes apply for cash withdrawals. If you have money invested that you want to withdraw, you need to sell your investments first. Selling investments can take 1 to 5 working days to settle depending on the investment type. Once your cash is available in your account, our usual ISA withdrawal timeframes apply.
The difference between withdrawing and transferring
When you make withdrawals from ISA accounts, cash is paid out tax-free and it leaves the tax-free ISA wrapper.
Transferring is when you move an existing ISA from one provider to another. You can transfer cash and existing investments without having to sell them first. Transferring an ISA doesn’t use up any of your ISA allowance for the year.
AJ Bell ISA withdrawal FAQs
There are various methods of withdrawing money from your account, depending on the account type. For your security, we complete authentication checks each time you withdraw cash. Keep in mind this could potentially delay when the cash reaches your account.
If you’re making a significant withdrawal and wish to keep your account open, you’ll need to leave a minimum of £100 in the account.
Stocks and
\u2026 Read moreYou can withdraw money from your LISA account at any time. But you’ll only receive the full amount if you withdraw it under specific circumstances:
- When using the money to fund the purchase of your first home worth £450,000 or less, and bought with a mortgage
- When you’re age 60 or over to fund your retirement
- If you’re terminally ill
To use your Lifetime ISA to buy your first home, you need to contact…
Read moreGet your money working for you
More about ISAs
From tips to boost your ISA savings, to understanding which ISA account is best for you, read more about these tax-free accounts.
Open an ISA
Invest up to £20,000 tax free each year with our most popular ISA account. Get started by investing as little as £25 per month.
Transfer an account
Thinking of moving an ISA over to us? It’s easy. We'll just need a few details of your current provider, then we’ll do the rest.
Important information: ISA rules apply. Remember that the value of investments can change, and you could lose money as well as make it. We don't offer advice, so it's important you understand the risks. If you're not sure, please speak to a financial adviser. These articles are for information purposes only and are not a personal recommendation or advice.