Cash ISA Transfer
Keeping a close eye on cash ISA interest rates is a sensible move for savers, as it means you can be the first to take advantage of new offers. Interest rates at the time of writing are low across many providers, but even so, it's always worth making sure you're getting the best possible rate for your savings.
Transferring to a new cash ISA provider when your current rate drops can allow you to chase the best rates around and ensure you make the most of your money. But before you do anything else, make sure you keep in mind the one fundamental rule of ISA transfes:
If you want to transfer your ISA, make sure you do it properly - never just withdraw the money or you'll immediately lose all the tax benefits.
How do I transfer my cash ISA?
Thankfully, it's a lot easier than in previous years, now transfers can be made online or with a simple form and it usually takes around 15 days. Some other useful tips for transferring:
- Cash ISA transfers can be done at any time during the tax year. However, do be aware that some fixed-rate cash ISA providers will charge you a set amount of interest if you transfer your money away from them - for example, 30 days' interest. Therefore, before you decide to switch, it's important to consider whether moving to a better rate will cancel out any interest lost by transferring
- You will need to ask your new ISA provider for an ISA transfer form, which you'll need to fill in. You'll need to include details of your current ISA and send off the form to your existing ISA provider to let them know that you want to transfer. They'll then liaise with the new ISA provider, who will deal with the rest of the transfer process on your behalf
- Once you've sent off the ISA transfer form, your new ISA provider should contact your current ISA provider within five working days. The ISA transfer process should take no longer than 15 working days. Once the transfer is complete, your new ISA provider will be in touch to confirm this