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Cash ISA transfer forms - always by post?

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Today I posted a paper cash ISA transfer form for a move from Paragon to Sainsbury's.

Do all financial institutions require postal ISA transfer instructions?

It seems strange to rely on paper methods in these days of whizz-bang online and app accounts.

Comments

  • masonic
    masonic Posts: 27,113 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 7 April 2022 at 6:31PM
    No, some are fully electronic. But both providers do have to have compatible systems for an electronic transfer to be used, and there are a few independent electronic ISA transfer networks. The ISA rules state that the sending ISA manager is still entitled to request a paper transfer authority with wet signature if they wish.
  • Yellowman
    Yellowman Posts: 182 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    Thank you for your interesting input.

    The requirement for postal transfers makes it more difficult to chase the best cash ISA rates.
  • Rich2808
    Rich2808 Posts: 1,385 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    edited 9 April 2022 at 3:50PM
    You are a bit spoiled with Paragon - invariably market leading rates, accounts opened in seconds, transfers in done online unless the existing provider doesn't provide that service, all flexible isas and a split isa provider so you can invest in multiple cash isas (some easy access, some fixed rate) during the year with them as opposed to just one.

    I hope Sainsburys work out. YBS also requires paper forms by post/branch for isa transfers too - and others.

    But online ISA transfers aren't always quick and easy - I did one with a major well known building society last year and the transfer in to them took 8 weeks due to their endless mess ups! I got £50 in compo though - as I complained.
  • Malchester
    Malchester Posts: 986 Forumite
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    Doing a few transfers at the moment. Interesting the differences. Paragon to YBS simple and easy. Principality to YBS from the Victorian era- they send a cheque in the post. Now YBS to Sainsbury and Principality to UBL. Very impressed with UBL and Sainsbury not at all impressed with YBS and positively angry at Principality 
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    No cash ISA transfer should result in a cheque as this means it has fallen outside of the ISA wrapper and is not longer part of previous years investment. Re-investing the money comes out of this years allowance. 
  • masonic
    masonic Posts: 27,113 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 9 April 2022 at 6:56PM
    400ixl said:
    No cash ISA transfer should result in a cheque as this means it has fallen outside of the ISA wrapper and is not longer part of previous years investment. Re-investing the money comes out of this years allowance. 
    Not true. When ISAs were first introduced, 100% of ISA transfers were made by cheque. That figure has fallen as electronic transfer mechanisms have been put in place between some combinations of ISA manager, but there are still many valid transfers utilising cheques. Money has not "fallen outside of the ISA wrapper" when the ceding ISA manager issues a cheque to the new ISA manager, nor does it fall outside the ISA wrapper when it is credited to the holding account of the ceding ISA manager and then transferred electronically.
    When you apply to your new ISA manager to transfer in an old ISA, this never results in the money coming out of this years allowance, whether it is transferred using a cheque or electronic funds transfer.
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Ok, didn't think that was the case. Stand corrected.
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