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.
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.
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.
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.
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.
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15th March 2021
You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply".
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I found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.
Very informative, find myself a good ISA account with best return in terms of interest.
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The website was very useful and informative.
ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs