Best Cash ISA Transfers
It can sometimes be beneficial for a saver to transfer their Cash ISA, particularly if they could achieve better interest rates elsewhere or want to change how they can save. However, not all ISA accept transfers in. It is therefore wise to shop around to try and find the best cash ISA transfers available.
You can use comparison tables on this website to compare a selection of different ISAs from different providers, some of which may permit transfers. You can click the more info links to find out more about each product.
Finding the right ISA transfer
Aside from accepting transfers, what makes a cash ISA best for one individual can be subjective to how they wish to save, for example how easily they would like to be able to make withdrawals.
Types of Cash ISA include:
- Instant Access – Usually allow the savers to make unlimited, free withdrawals. These accounts also often allow savers to deposit money into the account whenever they wish, providing they do not exceed their overall ISA allowance. These accounts are commonly offered on a variable interest basis, which means that the interest rate received on the account can be altered by the provider.
- Notice – Notice Cash ISAs require the account holder to give notice in advance of making withdrawals. The duration of this notice period varies but is often between 30 and 120 days. Providers may also place a limit on how many withdrawals the account holder can make within a year.
- Fixed Rate – Fixed Rate Cash ISAs generally require the saver to lock their savings into the account for a predefined period of time. Fixed rate ISAs are normally offered over terms of 1, 2, 3 or 5 years, during this terms savers have very restricted access to their savings, some accounts do allow early withdrawals but they tend to impose penalty charges for doing so. As with these accounts the rate of interest is fixed, savers can calculate exactly how much they stand to earn in interest over the ISA’s term from the outset.
How to transfer an ISA
Once a saver has identified the ISA they wish to move to and checked that the account accepts transfers. They need to contact provider of the ISA they wish to and complete and an ISA transfer form. Once this has been received the new provider will contact the current ISA provider and arrange for the transfer to be carried out, once the transfer has been completed the account holder will be notified by their new ISA provider. Industry guidelines state that transfers involving just Cash ISAs should be completed within 15 working days or 30 working days for transfers that involve an Investment ISA.
It is now possible to transfer between different types of ISA such as from an Investment ISA to a cash ISA or vice versa.