ISA transfer "IN" not as easy as the "OUT"

brayzbill

Hi All, apologies if this is something that has been asked many times before. Am I the only one that's noticed that transferring and ISA OUT tends to be relatively easy (either the electronic or the somewhat archaic but understandable snail mail) but finding someone that will allow transfers IN seems to be more challenging but also less transparent. I find it odd that providers must allow transfers OUT but they have no obligation to allow them IN, which just seems bonkers to me. So a) is it just me that thinks this and/or b) why do this?

I was going to add about partial transfers but I fear that's one for another discussion. 

cheers, b

etienneg

a) I suspect it is just you that thinks this.

b) In general, the law does not impose requirements unless they are justified. So in this case, it is justified to prevent a provider from refusing to allow a transfer out - otherwise the provider could just reduce the interest rate to 0% but insist on hanging on to your money or requiring you to withdraw it and thus lose its ISA status. However, insisting that a provider must accept a transfer in is not justified - if you don't like the terms on offer just go somewhere else.

Whether or not transfers in are allowed for a particular ISA is readily available information, usually in the summary description for the ISA but certainly in the T&Cs. Also, this is clearly laid out in lists of ISAs such as this one:
https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list

I'm really not sure why you think this is such an issue.

refluxer

You often have to read through the T&C's to check, but you shouldn't have a problem finding an ISA provider who allows transfers in, as the majority do. 

The only one I can think of who doesn't (off the top of my head) is Marcus. Zopa didn't used to, but now do.

Edit... A quick look at MSE's top tables for easy access and fixed rate ISAs shows that all the providers currently listed - except Chip - accept transfers in.

amanda1024

Surely all transfers are a simultaneous out and in? Out of the old ban and into the new one? So how can one be easier or harder? I do find that transfers are significantly more time-consuming than adding new money or withdrawing to a non-ISA account.
As to accepting transfers out but not in - I think there’s something in the ISA rules from the government about always being able to get to your money if you need it, so I don’t think a provider would be allowed to block transfers out. Whereas it’s up to them to decide how you can fund the account; perhaps some suppliers are worried about balances a lot higher than £20k being transferred in when they offer very good rates?