How to Transfer an Investment ISA
If you already hold a Stocks and Shares ISA, but have found a better deal and want to take advantage of it – you’ll want to transfer your existing Investment ISA to a new provider. We’ve broken down everything you need to know about how to transfer your Investment ISA in this blog.
By putting your money into a Stocks and Shares ISA, you can make the most of the tax-free savings available by putting your coins to work in a tax-free wrapper. But if you already have one, but have found another deal, you are still able to take advantage of that deal even if
It can be fairly straightforward to move your money from one Investment ISA to another, but there are some complicated things that do need to be considered.
Benefits of transferring an ISA:
- You can take advantage of a better deal
- You can change your investment or account to a new investment which better suits your changing needs or wants
- You can gather all your investments to one provider, if ease of management is what you are looking for
Before you begin the process of transferring an Investment ISA, there are a few key facts you need to be aware of:
- All providers are required to allow you to transfer your ISA out, but it’s not required for providers to accept a transfer. Make sure your desired new provider accepts Stocks and Share ISA transfers.
- There is no limit to the number of times you can do this (but there are limits to the number of ISA accounts you can open each tax year).
- Like all other kinds of ISA transfer, you’ll need to contact the provider you want to transfer to and apply to transfer. They should have a form for you to fill in. You’ll also need to make sure that the provider you are moving from knows.
- The thing you must not do is take the money out yourself and then put it into another Investment ISA manually – as this will mean it loses it’s tax free status.
Our Step by Step Guide to Transferring your Investment ISA
Step One: Do your research
There are so many ISA accounts out there, it is always worth shopping around to find the best possible rate to maximise the returns you will get on your savings. There are different types of Investment ISA available, so evaluate what you want from your ISA and then choose an account which fits your needs.
Examples of different Investment ISAs you might want to consider include:
Step Two: Check your providers
Check that your desired provider takes transfers from other ISAs – some providers do not, so it’s possible your attempt will be rejected right off the bat if you have not checked this.
Your current bank is required by law to ensure that they accept your request for transfer – but your desired provider is not, so making sure that this is a feasible transfer is key.
Step Three: Read the small print
Some providers will charge penalties for withdrawing or transferring from ISA accounts. It’s worth looking into this beforehand so you won’t be caught out by any unexpected charges.
Step Four: Contact
You need to make sure that you contact both of the providers so that they take care of the transfer. If you take the money out and move it yourself, then this will mean that your money will lose its tax-exempt status, which negates the point of an ISA.
Step Five: Wait
It should take 15 days for your money to move across. You don’t need to do anything at this stage – both of the banks should move the money between them with no input from you.
Step Six: Follow up
Once the 15 days have passed, check with your new provider to make sure everything has gone smoothly.