transfer from isa to isa ...but done mannually via current account

Ma034001

hi all

after The programme this week I opened a new ISA with Atom, with the view to transfer my existing ISA ( both cash ones) across, but Atom don't allow ISA to ISA transfer only transfer via current account. How does moving my existing ISA into my existing Current account and then into my new ISA impact me ? 

anyone else experience this?
thanks

noodlingalong

As far as I am aware the money has to transfer ISA to ISA. As soon as you take it out of the ISA wrapper, it becomes subject to the current rules for this year & you lose the benefit of previous years tax saving benefits.

I would suggest that this means the ATOM ISA you have selected only allows 'new' ISA money rather than transferred in funds. This is something to beware of I think. Maybe others who have more detailed knowledge will be along to correct me, but this would not be something I would be happy doing myself.

refluxer

Atom don't allow transfers-in to their cash ISA account so you can only pay new subscriptions into it, which means that if you've already used up your £20k ISA allowance for the current (2025-26) tax year, then you can't pay into it as withdrawing to your current account and paying it back into Atom would effectively remove it from the ISA 'wrapper' and therefore it would count again towards your allowance.

Have you used any or all of your 2025-26 ISA allowance (paid new subscriptions into an ISA (or ISAs) since 6th April this year) ?

Edit - there may be some room for maneuver if your existing ISAs are 'flexible', but don't withdraw any money until you've elaborated further.

eskbanker

Ma034001 said:

after The programme this week I opened a new ISA with Atom, with the view to transfer my existing ISA ( both cash ones) across, but Atom don't allow ISA to ISA transfer only transfer via current account. How does moving my existing ISA into my existing Current account and then into my new ISA impact me ? 

How much is in your existing ISAs and are they flexible ones?

Ma034001

under 11k and unsure if it current ISA is flexible

Ma034001

refluxer said:

Atom don't allow transfers-in to their cash ISA account so you can only pay new subscriptions into it, which means that if you've already used up your £20k ISA allowance for the current (2025-26) tax year, then you can't pay into it as withdrawing to your current account and paying it back into Atom would effectively remove it from the ISA 'wrapper' and therefore it would count again towards your allowance.

Have you used any or all of your 2025-26 ISA allowance (paid new subscriptions into an ISA (or ISAs) since 6th April this year) ?

Edit - there may be some room for maneuver if your existing ISAs are 'flexible', but don't withdraw any money until you've elaborated further.

nope I've only withdrawn form isa not added to it so still have my full 20k allowance

Ma034001

noodlingalong said:

As far as I am aware the money has to transfer ISA to ISA. As soon as you take it out of the ISA wrapper, it becomes subject to the current rules for this year & you lose the benefit of previous years tax saving benefits.

I would suggest that this means the ATOM ISA you have selected only allows 'new' ISA money rather than transferred in funds. This is something to beware of I think. Maybe others who have more detailed knowledge will be along to correct me, but this would not be something I would be happy doing myself.

I've checked the detail  on Atom app it says

"we currently don't support transfers in from another ISA provider into this Easy Access Cash ISA"

Ma034001

noticed this small print on the mse website....

"If you don't want an account with a bonus and want unlimited withdrawals, app-based Atom Bank pays 4.25% (min £1, no transfers in) OR online Charter Savings Bank pays 4.16% (min £1, transfers allowed) ."

eskbanker

Ma034001 said:

under 11k and unsure if it current ISA is flexible

Ma034001 said:
nope I've only withdrawn form isa not added to it so still have my full 20k allowance

As the £11K must be prior year money, the flexibility doesn't actually make any difference after all, but if you withdrew to your current account and paid it into Atom, that would count as a current year subscription, leaving you with £9K remaining - would that be an issue for you, i.e. are you wanting to use more of your current year allowance than that in other transactions?