ISA Query

A question about : ISA Query

Hoping someone can answer this, as I've looked at the guides but I can't see anything about once an ISA has completed a full year and generated the interest.

I have an ISA which had a fixed interest rate for a year and is about to mature in the next 2 weeks. I know that it will turn into a variable rate ISA unless I want to fix it for a term period again.

My question is, what can I do with the interest?

1. If I leave the interest with the ISA, will the interest also generate further interest and if so will this be tax free? Or is it capped at the Ј3k from that previous years so the interest doesn't generate me anything or the extra interest being generated is taxed?

2. Can I take the interest out of the ISA if it isn't generating me any interest without it affecting the ISA status?

Thanks for any help

Best answers:

• The interest generates tax free interest, the rules allow it. My ISA's with two different banks do.
  You should be able to withdraw any amount from the account without affecting its tax free status.
• Thanks, I'll leave the interest it's generated in the ISA if it's going to continue to generate more interest tax free. Thanks again