Best ISA Rates for Transfers

Best ISA Rates for Transfers

Transferring your ISA can be a beneficial way to increase the value of your savings. Customers can benefit from higher interest rates and transfer bonuses.

It’s worth remembering that while all ISA providers have to allow an account holder to transfer their ISA elsewhere, ISA providers do not have to allow individuals to transfer in to one of their products. So check with your new provider regarding transfers and any regulations they may have.

Transferring an ISA

Once you’ve found an ISA to suit you, checked that they take transfers and don’t require a minimum desposit greater than your transfer amount, it’s time to switch. It’s never been easier, you simply contact the new provider and complete the transfer form they provide. Some branches allow you to do this totally online but most require a form.

The new provider will then get in contact with your current provider and arrange the transfer on your behalf. It should take no longer than 15 working days for the providers to complete a Cash ISA transfer, or 30 days for transfers that involve an investment ISA. Your new provider should contact you once the transfer has been completed. 

Some providers pay interest from the day you request a transfer and others once they receive the payment. 

Useful to Know

• When transferring money from an ISA from the current tax year you have to transfer it all. You can however transfer all or part of the money saved in ISAs from previous tax years
• ISA providers can place certain restrictions on transferring ISAs, they can also impose a penalty charge for transferring which tends to be based upon on a set number of days’ worth of interest

If you’re transferring to achieve a better interest rate then you should first check to make sure that any penalty you would be charged would not cancel out the potential benefits of moving.

Types of Cash ISA

It is possible to transfer between different types of ISA, such as from an Investment ISA into a Cash ISA and vice versa. When looking for a Cash ISA to transfer to, you might want to consider what kind of Cash ISA it would be best for you to put money into. Here are the different types of ISA:

Instant Access: Instant Access products usually allow savers to make unlimited free withdrawals and deposits, as long as they do not exceed their ISA Allowance, so they can access their money relatively easily. This kind of Cash ISA usually offers a variable rate of interest.

Fixed Rate: Fixed Rate ISAs often require savers to lock their cash within the account for a set term usually; 1, 2, 3 or 5 years. During the ISA’s term, savers have very restricted access to their savings within the account, some fixed-rate ISAs to allow early withdrawals but tend to impose a penalty for doing so. These types of ISA offer a fixed-rate of interest over the ISA’s term. They also generally have a minimum balance amount required to open the account.