Cash ISA Transfer Query

Munny10

Hello all

I have funds in a cash ISA with Principality which were added in the 22/23 tax year but i want to do an ISA transfer into my Chip ISA which i opened this tax year.

I was waiting a few months because Chip didn't accept transfers in when i first opened the account with them, now they do accept ISA transfers in but Principality aren't on their list of providers who they can accept.

Principality don't do electronic/online ISA transfers, only paper based and it appears chip can only accept transfers in electronically. But I still want to transfer the funds from principality into Chip because Principality reduced their rates and aren't competitive anymore.

So from what I understand, the only option is the following (but I haven't done an ISA transfer before and just wanted to double check this is correct):

- Find a provider which can accept transfers in from principality and that chip can accept transfers in from.

- Do an ISA transfer from Principality to the new provider and then another ISA transfer from the new provider to Chip.

Is this the correct approach to get my funds from Principality to Chip in the scenario i have described? Is there a more efficient or entirely different approach required?

Thanks

Catplan

If Chip won’t accept paper transfer then what you describe seems the only option, extra transfer but hey ho.

Edit I’ve just checked and Chip at 5.10, Principality at 5%…… i mean why not transfer both to an account paying 5.20%? I get everyone wants the best rate but 5% still seems reasonable and if you feel it’s not competitive compared to Chip at 5.1 then surely same applies if you can get 5.2?

Although the paper only transfer from Principality will no doubt still be an issue. 

Munny10

Catplan said:

If Chip won’t accept paper transfer then what you describe seems the only option, extra transfer but hey ho.

Edit I’ve just checked and Chip at 5.10, Principality at 5%…… i mean why not transfer both to an account paying 5.20%? I get everyone wants the best rate but 5% still seems reasonable and if you feel it’s not competitive compared to Chip at 5.1 then surely same applies if you can get 5.2?

Although the paper only transfer from Principality will no doubt still be an issue. 

Thanks for confirming.

Regarding the rates I prefer to go for ones with no limits on withdrawals, minimum/max amounts etc... but tbh I didn't research Chip properly and didn't realise they weren't accepting cash ISA transfers in at the time until i already created an account.

The Principality rate I have (with no limitations) has dropped to 4.10% so that's why i want transfer it, I usually wouldn't go through the effort for 0.10% but since i'd need to do the extra transfer in this case it does make sense to just transfer both to a 5.20% rate, especially if they have no limitations and accept a paper transfer as you mentioned.

friolento

I have transferred two ISAs from Principality this tax year. One to Moneybox and one to T212. Both requested online, completed within 48 hours, no paper involved