Transferring your ISA can be a smart move for savers, especially given the instability of interest rates in the current financial climate. By keeping tabs on rates across the spectrum of ISA providers, and transferring when your current rate drops, it can allow you to chase the best rates around and ensure you make the most of your hard-earned cash. But before you do anything else, make sure you keep in mind the one fundamental rule of ISA transfers…
If you want to transfer your ISA, make sure you do it properly - never just withdraw the money or you'll immediately lose all the tax benefits.
ISA transfers used to be notorious for taking a long time, but thanks to recent guidelines, transferring an ISA from one provider to another is now a fairly straightforward process:
The short answer is yes - you are free to transfer previous years' ISA balances to a better rate, as well as opening a separate account, as long as you only put cash into the latter account. You can pay into one cash ISA and one investment ISA each tax year, but transfers don't count as 'paying in'. You can transfer as many times as you like, and there's no set time in the tax year when you need to transfer.
Your existing ISA manager cannot stop you transferring, but they may charge you for it. However, this is becoming less common, particularly with cash ISAs. You should contact your current ISA provider and confirm their policy on this before making a decision.
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
ISAs are a tax-advantageous way to save or invest, check out some of the ISA options below
There are a range of types of fund ISA
15th September 2016
The Government has announced today that the 25% annual bonus on savings held in lifetime ISAs will be paid monthly. This change will take effect from the 2018/19 tax year so a year after lifetime ISAs are launched in April 2017.
Sign up to our Newsletter to get exclusive news and offers direct to your inbox.
ISA.co.uk is a trading style of Fair Investment Company.
We've been comparing and recommending ISAs for many years so you can trust you're in good hands.About us