Can I upgrade my ISA product with the same provider, if I live abroad ?

Polistown

Hi there

I have had an ISA account with Santander since 2009 but moved to Cyprus 10 years ago from the U.K

I appreciate that I not allowed to make additional yearly contributions, but wanted to know if I am allowed to switch from and Easy Acess Cash ISA to a relatively better fixed rate ISA which currently has a 4.5% interest rate for 1 year

I understand that "You can transfer your ISA to another provider even if you are not a UK resident" but I cannot find any help in respect of switching accounts, within the same provider

When I checked the online availability it does show me the option to "upgrade"

I would appreciate if someone knows the answer and can assist- before I make the changes online

born_again

Depends on their policy (best to contact them)

As many will not allow someone outside the UK to open or change accounts.

Polistown

Thanks for your input. I've read their T&C's, but it does not state anywhere if you can upgrade to a different product from your existing ISA to their fixed rate ISA's - if outside the U.K,

Only that you are not allowed to make additional contrbutions which I was aware of anyway

I'll call them for advice tomorrow

Thanks again

dunstonh

I understand that "You can transfer your ISA to another provider even if you are not a UK resident" but I cannot find any help in respect of switching accounts, within the same provider

The issue you will mainly have is that UK financial services companies are not allowed to offer financial products and services to EU residents unless they have a branch in the country that you are resident in, or they hold a passporting permissions into that country via another EU branch. You are allowed to retain any product you already have. This is one of the EU's Brexit punishments.

If you are going to remain resident long-term, you may wish to consider an alternative to the ISA. After all, the ISA is not tax-free if you're resident in Cyprus.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82096934#Comment_82096934

Interestingly, since the OP has only been Cypriot tax resident for 10 years, he has a further 7 years to go before he risks becoming Cypriot tax domiciled, so not liable to Cyprus 17% annual Special Defence Contribution on his interest until then. Article below explains -

https://globallawexperts.com/cyprus-tax-residency-nondom/

However, as you indicated Brexit effectively denies him access to the vast majority of UK based savings and investing institutions, so it does seem his choice of interest bearing accounts is effectively limited to what Santander is prepared to provide.

Looking ahead and depending on the the quantum of his savings, OP would be wise to explore offshore investment platforms that could provide him access to investing in UK stocks and shares. This may open the door to investing in UK gilts if he wishes to access a 'secure' interest bearing investment. However this is a whole other potentially complex learning curve, compared to simple bank saving accounts.