There are a number of reasons a person may want to transfer an ISA. Firstly, it's much easier to manage your money if you consolidate the amounts in to one account. Customers can also achieve a better interest rate with a different provider, many banks offer variable rates of interest so the rate you signed up with may not be what you’re receiving now. See latest rates on our comparison charts.
However it is important to try and ensure you follow the correct transfer process, rather than withdrawing the money yourself, so as not to miss out on some of your annual ISA allowance.
What does Santander offer?
Santander offer a simple switching service as well as:
- Easy transfers with 14 day cancellation period and no transfer fees
- Higher interest rates for Santander 123 world or Select customers
Useful to Know
Some form of penalty is usually applied if you want to end the contact early, particularly if you’re switching from a fixed term ISA so it’s good to check your providers conditions as well any transfer minimums or conditions your new provider may have.
- Santander require a minimum deposit of £500
- An early closure of their fixed rate ISA incurs a penalty of 120 days interest
Before you switch, make sure you’re able to meet these requirements otherwise you could leave with less money than you started.
Making use of an ISA
The rules regarding ISAs have changed dramatically since last year and many people have been left confused about how best to open or use an ISA.
However, ISA’s are an ideal way to save large amounts of money, particularly if you’re likely to go over the current £1000 interest limit (the limit of the Personal Savings Allowance for basic 20% rate taxpayers). They are also a sensible way for couples to save as, between you, you can save over £30,000 without paying tax.
Santander offer a simple switching service but do not offer the transfer guarantees that some other banks do and they don’t start paying interest until the money has arrived in your new account. Their rate of interest is competitive, particularly if you’re a Santander customer.