skip to main content
29th
Sep 2020
/

How Do I Transfer My ISA?

How Do I Transfer My ISA?

You already have an ISA - but you're thinking you'd like a better rate. Or maybe you'd like to turn your Cash ISA into an Investment ISA. Or maybe you'd like to transfer your Investment ISA to a different type of Stocks and Shares ISA, if your priorities have changed. Whatever your reason is, you need to know how to transfer your ISA - and we've got you covered. 

Why would I want to transfer my ISA?

There is a large variety of reasons that you might want to be transferring your ISA, including:

  • You’ve found a better rate with another provider
  • You want to change to a different type of ISA
  • You want to make your Cash ISA into an Investment ISA
  • You want to try out a new form of investment

Often, people can be sitting on an ISA which they opened quite some time ago, and are not gaining as much interest on this as when they first opened that account. As better interest rates are out there, they might want to transfer in order to generate better returns.

You can only open one new ISA each year, so if you want to take advantage of a newly found better deal, you will need to transfer your ISA to the new provider.

There are some differences between transferring a Cash ISA and transferring an Investment ISA, so we have put together some information you can use to make either transfer. 

How do I transfer my Cash ISA? 

If you've found a better rate on an account which will give you a better rate of return on your Cash ISA, then you'll be looking to transfer. But before you make that all-important switch, here is what you need to know about the practicalities of transfer: 

  • You need to ask your providers to switch your account for you – both your current and your desired provider. It’s important to make sure the banks are the ones who do the transferring, as if you withdraw and move the money yourself if looses the tax-free status.
  • Your current bank is required by law to ensure that they accept your request for transfer – but your desired provider is not, so make sure that you check that they will accept a transfer before you start the process.
  • You can transfer any ISA you hold, whether it is from this year or previous years.
  • You can transfer funds from previous ISAs into different accounts, splitting the benefit you can gain.
  • You could be subject to penalties from your current provider for switching – make sure you’ve read the small print to be prepared to know what percentage (if any) of your money they might take as a leaving penalty.
  • You have to transfer your ISA from the current tax year in one lump sum. Previous years’ ISAs can be split when transferred.
  • You can pool all of your money from previous ISAs into one bank account, you are able to do this. But the money will only be protected up to £85,000 as this is the FSCS limit.

How do I transfer my Investment ISA?

If you are looking to transfer your Investment ISA - whether this is to another Investment ISA account or to a Cash ISA - then you'll need to know the following:

  • You are able to move money from your Investment ISA to your cash ISA – no matter if these are held with the same provider or a different one.
  • Like with Cash ISAs, you need to make sure your providers do the legwork to make the switch for you. Otherwise, you run the risk of loosing the tax free status of your money if you attempt to withdraw and re-invest yourself.
  • Be aware that transferring to Investment ISAs takes longer than Cash ISAs. Cash ISAs often take about 15 days to transfer, but Investment ISAs can take up to 30 days in order to process.
  • You can choose whether you want to transfer your Investment ISA as stock or as cash. Generally this will boil down to whether or not you are happy with your investments. If you are, you should transfer as stock, and if not then cash might be a better option. Transferring your ISA Investments to cash will involve selling the stock your money is invested in.
  • Like with Cash ISAs, there might be exit penalties by certain providers when it comes to transferring to a different supplier. Getting in contact with your new provider might be worth your while here, as some suppliers may agree to cover the cost of these penalties for you because you are transferring to their service.
  • Follow up with your previous provider once it’s been a couple months. Because dividends on investments are usually paid a few months after the investment has been made, you might be due some payments from your last couple months with that supplier. They should forward these to you automatically, but they might not always so it is worth following up. 

Read more about Cash ISAs.

Read more about Investment ISAs.

Read more about ISA Transfers.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Our Top Picks for Technology Stocks and Shares ISAs

19th January 2021

The tech industry has been booming for the past fifteen years; and it seems to be a rollercoaster that only goes up. The tech bubble has yet to burst, with companies coming out with more and more technological developments and consumer demand is certainly not slowing down. So, for the tech-savvy investor who wants to put their pennies behind this strong growing industry, we’ve put together our top three picks for Technology Stocks and Shares ISAs. 

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

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

4.74 Average

23 Reviews

Jen

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.

Paul

Very informative, find myself a good ISA account with best return in terms of interest.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Rob Holden

The website was very useful and informative.

Andrew Johnson

ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs

Crowd2Fund

Excellent website - clear and helpful information about different products - and a trustworthy partner.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Steve

Really simple to use and all the information was clear with lots of products available. The interest calculator was really handy too. Have bookmarked and will definitely use again.

Hannah Gordon

This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Anonymous

If you wish to invest in an ISA this site has it all. A super comprehensive range of simply explained products from all the major companies.

Cristina Iacob

Very knowledgeble company with an extensive range of services, a great website with loads of useful information.

Anonymous

Nice graphics and easy to navigate

Dr Alan Rogan BSc PhD FCIOB FCABE Eur Ing

Good advice and professional approach

Razvan

Very helpful for getting my annual ISA

Jonny Doulton

Clear, concise and very professional outfit with an excellent choice of market leading deals.

Paul Tissington

ISA.co.uk not only helped narrow down my choices for a Junior ISA but also provided additional practical information that helped demystify the whole process.

Sunil Karadia

Just the site I needed, I have been looking for a suitable ISA for a while, but as there are so many to choose from, find it difficult to find the right one for me.

James Weatheritt

I found the information on ISA.co.uk very helpful and easy to understand. The site is easy to navigate and find what you're looking for.

Lisa Holden

I found ISA.co.uk very insightful and easy to navigate through. The content was useful and helped me make my ISA decision.

Neta Pourhosseini

I thought the information provided was easy to understand and very informative, I would recommend to friends for deffinite.