ISA Transfer Question

palemist

Hi kind folks of the MSE Forum,

Is it better to initiate your a cash ISA Transfer OUT from the provider that currently holds your ISA pot or initiate it as a transfer IN to the 'destnation' ISA provider, [meaning the ISA Provider that you fancy their rates and want to move to]?

I currently hold a Zopa Cash ISA [4.8%] but I want to transfer to Trading 212 [5.0%] 

Is there any benefit or disadvantages from doing it one way or the other? 

gt94sss2

ISA rules say you have to do an ISA transfer via the new provider. 

As such, if you want to move to Trading212, you need to do initiate the process via them and T212 will then contact Zopla on your behalf

You can't do a transfer any other way and if you try, you could lose that tax free allowance.

mebu60

In. By the new provider. They will ask the relevant questions during the application process. Assuming they accept transfers-in.

It is the only option to ensure you do not lose the tax advantages of the ISA wrapper. 

palemist

Thanks both! that's very helpful, much appreciated.  ❤