Is it easy to transfer an ISA

cracker_jack

My existing fixed ISA is ending soon and the offers for reinvestment with the same bank are very low.

I have seen some online ones that have a much higher rate.

As far as I know I can apply online and get the ISA transferred, how exactly do I go about this, do I wait until my existing ISA has ended or can I apply for the transfer now, ISA matures next week.

I don't want to end up transferring my ISA early and lose all the interest in it.

isasmurf

You ask for a transfer form from the new bank. The transfer form will give the option to transfer immediately and accept the penalties, or to wait until the maturity date.

Send the completed form to your new bank who will liaise with your current bank to transfer the funds.

AnotherJoe

Why an ISA and not one of the many savings and current accounts that pay more than any ISA?

But yes if the incoming ISA allows transfers in its very easy. Wait until the current ISA matures though because obviously (??) you wont get any final payments if you dont hold it for the full agreed term.

cracker_jack

I've filled in the online application of the new bank where I want to transfer my existing ISA and there was absolutely no mention of when the transfer will take place or whether they will wait for it to mature before they transfer it.

I'll have to send them an email to see how exactly they will go about transferring the ISA.

frenchp

I have a cash ISA due to expire on 1st June. I also want to open a new ISA for 2017/2018.

My question is - can I open a NEW ISA with new money to one provider, and then when the current ISA matures on 1st June transfer that to ANOTHER provider (as most transfers have to be done within a couple of weeks) - or does all the money have to go to the same provider?

I want to transfer new money in immediately and would rather not have to wait until June if possible.

Thanks

cracker_jack

As far as I know existing ISAs do not affect new ISAs.

So when your current ISA matures in June you can just transfer that to a new provider.

bowlhead99

New 2017/18 ISA contributions to cash ISAs must sit with one provider.

Your "maturing" ISA balances from previous years are not new 2017/18 contributions, they are old money that was contributed into an ISA in 2016/17 or earlier. You can transfer that wherever you like. It's been the same way for the whole 18 years that ISAs have been running now..

Of course, as mentioned in post #3 there are lots of non-ISA accounts that pay better rates than ISAs, so an ISA isn't always the best place for your money (although it depends on personal circumstances and whether or not you've already maxed out the better accounts).

frenchp

Thanks - I want to put money into an ISA as saving interest is over the £1000 threshold - so will pay more tax on my savings if I leave it in a 'normal' account

fangoose

I've just transferred my old Isas to Coventry building society flexible isa. Interest rate not the best but it means I can dip in to the fund (we may be moving this year) and as long as I pay it back this financial year it will still be part of my isa savings.

[Deleted User]

cracker_jack wrote: »

My existing fixed ISA is ending soon and the offers for reinvestment with the same bank are very low.

I have seen some online ones that have a much higher rate.

As far as I know I can apply online and get the ISA transferred, how exactly do I go about this, do I wait until my existing ISA has ended or can I apply for the transfer now, ISA matures next week.

I don't want to end up transferring my ISA early and lose all the interest in it.

Provided you have the receiving account all set up and ready, some banks will allow you to do this online and it will take just a couple of minutes but not all. I've had one fully completed in less than 3 days. At the other extreme, there are other banks who like to put in hurdles and bureaucracy to slow you down. For example, it's not unusual for some to demand forms to be filled in signed, sent by snailmail and further slowed by raising queries or just slow processing. You need to particularly careful not to initiate the closure too early as some banks are very strict at penalising you for closing fixed accounts early.

The answer for you is: talk to the two banks concerned and see what they say before proceeding.
Good luck!

jappiem78

I've moved ISA provider (cash ISA with fixed rate) and moved that one into an investment ISA. From my experience, it's best to go to your new provider, choose the options to transfer an existing ISA en tell them to transfer after your fixed rate ends (you don't want to lose your bonus rate). From the time the ISA ended, it took me less than 2 weeks to transfer which is not too bad!

So: talk to your new provider.