Transfer your cash ISA
If you are not happy with the interest being offered by your current cash ISA provider then you have the option of transferring to another provider offering a better rate. So if you have cash ISAs from previous years you can transfer some or all of them into a new Cash ISA plan with a new provider that offers a better rate of interest.
Transferring a cash ISA is straightforward. and based on the Building Societies Association guidelines should take a provider no more than 15 working days to facilitate the move.
It's possible to make cash ISA transfers at any time, into another cash ISA or into a stocks and shares ISA, as well as the other way round. Be aware that cash ISA transfers have to be done through the new provider, who will carry out the process for you. If you just withdraw the funds from your cash ISA with the intention of putting them into a different one, this will count towards your total ISA allowance for that year. Or, if you have already deposited up to your total allowance, you will not be able to pay the money into another ISA until the next tax year. Cash ISA transfers done through the proper process will not count towards your ISA allowance, so always take the time to transfer your funds correctly.
How do you transfer a cash ISA ?
1. Find an attractive alternative home for your cash ISA by shopping around. Use our website to find a range of current cash ISA deals. Once you have found the cash ISA plan you require you will need to complete a ISA transfer authority form (this will be included in the new provider application pack) as well as a ISA application form.
2. Once you have provided the completed forms to your new provider you may be asked for additional information to complete the transfer. The completed forms will be sent on to your existing cash ISA provider.
3. Your existing ISA provider may contact you to confirm the transfer request and may ask for additional information before they proceed. Once they have completed their administration they will send the transfer funds to the new ISA provider.
4. By working day 11 the new ISA provider will chase the old provider if they have not received a timely response. If there is a delay to the transfer you should be contacted with an explanation and likely timescale for resolution. Once funds are received your new ISA provider will credit funds to your ISA account and backdate interest. Your new provider will backdate interest to the first day where interest no longer accrues on the funds being transferred from your old ISA. Your new ISA provider will start paying interest from day 16 at the latest regardless of whether the ISA transfer has completed within the standard 15 business working day timeline.
5. You have the right to stipulate the timescale for your ISA transfer which you may want to do to take account of any applicable notice period or fixed rate period to ensure that you avoid losing interest. If you make such a request the ISA transfer will be pended until it is appropriate to proceed. It is important that you check with your new ISA provider that the product that you wish to apply for will still be available after the notice period of the old product has ended.
What if I have already taken out my 2014-15 cash ISA?
There is nothing stopping you moving this cash ISA and cash ISAs from previous years years into a new Cash ISA plan or a stocks and shares ISA plan if your prefer. Compare deals and make a cash ISA transfer to make your money work as hard as possible – keep an eye on your interest rate and if it falls, consider switching. Or if it's a fixed rate, make sure you shop around when the deal comes to an end.
Can I transfer my cash ISA to a new ISA account myself ?
No. If you withdraw cash from a cash ISA yourself you may forfeit the tax free status enjoyed on the account. By getting your new ISA provider to carry out the transfer you can be assured that your ISA tax free status will be preserved.