Principality BS cash ISA transfer to a Moneybox ISA

where_are_we

I was going to transfer my Principality cash ISA to Trading 212 cash ISA but they are not on their list of approved providers. I have decided to transfer instead to Moneybox cash ISA. Principality BS are not on their list of non approved providers but underneath they imply the list is not complete.

I have message Moneybox to confirm that Principality BS are ok to transfer from but as yet no reply.

Has anyone completed a transfer like this?

refluxer

AFAIK, Principality don't used the BACs ISA transfer service so if your new provider only accepts transfer from companies who do (ie. transfer electronically with no paper forms or cheques), then you won't be able to transfer your Principality ISA to them. 

refluxer

The good news, though, is that the majority of ISA providers do still accept paper transfers so if Moneybox don't but you're still set on using them, then you could transfer to a provider who does and then transfer from them to Moneybox.

Just make sure that the intermediate provider is on Moneybox's list of approved providers if they have one or if they don't, you'd normally be safe choosing one from Cynergy's handy list of BACs ISA transfer providers which is in the FAQs on this page. (Ironically, Moneybox aren't on that list !)

In general, its often the app-only banks that don't want the hassle of dealing with paper forms and cheques, although I suspect that many of the more mainstream providers will start to follow suit to cut hassle/costs and minimise the risk of forms and cheques getting lost in the post.

Edit - it's worth noting that one of their current competitors (rate-wise, at least) - Trading212 - are dropping their own rate down to 4.90% soon so it's possible that the likes of Plum and Moneybox won't stay this high for long if they follow suit.

where_are_we

had a reply from moneybox -

"Yes we can accept transfers from Principality Building Society.You can start a transfer in via the app in Settings > Transfer in an existing ISA - you’ll need to be on the latest version of the app"

Moneybox cash ISA interest rate will likely follow Trading 212 cash ISA`s drop to 4.9%.

My Principality cash ISA is dropping to 4.7% on 5/12.

My feelings are that Moneybox`s rate will above Principality for a while so I will probably go through with the transfer.

HMRC will enjoy monitoring ISA activity under the new rules!

eskbanker

where_are_we said:

HMRC will enjoy monitoring ISA activity under the new rules!

While it's likely that there'll be more reports from ISA providers resulting from the new freedoms, in your case you're not actually taking advantage of the new rules, in that such transfers have always been permitted.