Let’s say for example I have amounted up £10,000 in an ISA and haven't deposited any money for about 2 years. When the interest for the year kicks in, the total climbs to £10,500.

Once the new tax year starts(I still haven't deposited any more funds at this point), I decide to withdraw £500 (i.e. the interest I have made). Which brings me back down to £10,000.

My question is, can I put in a new deposit of £3,600 cash and reap the interest of the full £13,600 when it comes around again?

I understand that if you put money into an ISA then withdraw it, you lose the benefit of having interest paid on the amount you took out (i.e. deposit £700, then a week later take it out again - you can only put in another £2,900 of which you can benefit from Interest)

So the bottom line is - if I take money out of my ISA **BEFORE** I deposit any for that year - can I still deposit the max amount and reap the full interest of the max of £3,600?

Many thanks for your help!

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As I read it, it doesn't matter how much interest you make on the ISA, the amount you can deposit = £3,600 in cash or £7,200 in shares or a mix of both.
Check out the link below for yourself & see what you think.

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You can take out what you want but you can only pay in 3600 in any one tax year, interest does not count towards the 3600.

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You can only deposit £3,600 per year,you can withdraw whatever you want. The interest will be paid on the total balance.

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