How does transferring a Cash ISA work?

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Transferring a Cash ISA is where you move your funds from one ISA provider to another. You can also change products with your current provider (as long as the terms and conditions allow it). This has to be done in the correct way, or you risk losing tax-free status.

Cash ISA transfer process

If you want to transfer a Cash ISA to a Cash ISA from a different provider, this is how it works:
  • Find the Cash ISA you want to transfer your old or current Cash ISA to.
  • Check for any changes or terms and conditions that may affect you transferring a Cash ISA.
  • Contact the provider of the Cash ISA you want to transfer to.
  • Complete the ISA transfer form they provide you with (this is either a paper form or online form).

Why transfer an ISA?

There are lots of reasons why you may want to transfer an ISA. You may want to transfer an ISA to:
  • Get a better rate with a different Cash ISA product.
  • Change to a different type of ISA.
  • Combine lots of old Cash ISAs into one to make it easier to manage.

Transferring to the same or a different ISA type

You can move a Cash ISA to the same type with a different provider. You can also transfer an ISA into a different type of ISA.

For example, you could:
Transfer a Cash ISA into a different Cash ISA.
Transfer a Stocks and Shares ISA into a Cash ISA.

Is there a charge for transferring a Cash ISA?

Whether it costs to transfer a Cash ISA will depend on who you have the ISA with and which product you’ve got. Transfer charges may apply, please check with your existing provider.

Some providers will charge a fee to transfer, so make sure you check before. Fees and charges might mean you start to gain less by transferring. 

How long does transferring a Cash ISA take?

Transfers between two Cash ISAs should take no longer than 15 working days.
Transferring between different types of ISA can take up to 30 calendar days, according to the Government.

Can I transfer an ISA to somebody else?

No, it’s not possible to transfer an ISA to another person. The tax benefits of this kind of account are for the person who opened it only and can’t be moved.

To give the money to someone else, you’d need to close the account and transfer the money to your main account, then send the money from there.

How does an ISA transfer affect your allowance?

Transferring an ISA from a previous tax year doesn’t affect your ISA allowance for this current tax year. It has to be done using the ISA transfer process of the provider you are switching to.

If you withdraw the funds and close the ISA, then pay those funds into another ISA, that will use your allowance. This can also mean losing your tax-free status.
The content on this page is for reference and does not constitute financial advice.
For impartial financial advice, try MoneyHelper.