Transferring an ISA

What is an ISA transfer? 

An ISA (Individual Savings Account) transfer is where you move your money from one ISA to another. You can only transfer to another ISA in your name. If you don’t use an ISA transfer to move money between ISAs, you risk losing the tax-free* status. 

Reasons to transfer an ISA

There are a few reasons you might choose to transfer your ISA. Things like: 

• To get a better interest rate. 
• To change to a different type of ISA.
• To combine your ISAs into one, making them easier to manage.

Transferring a cash ISA 

You can: 

• Transfer your ISA to the same type of ISA - for example, moving a cash ISA to a different cash ISA.
• Transfer your ISA to a different type of ISA - for example, moving a Stocks and Shares ISA into a cash ISA.  

To transfer your ISA you’ll need to: 

1. Check the terms and conditions of your current ISA to understand whether there are any charges to transfer out. 
2. Find the new ISA you’d like to transfer your money into and check that it accepts transfers in. 
3. Contact the provider of the new ISA. 
4. Complete the ISA transfer form they provide you. 

Here's how to transfer your cash ISA to Principality. 
 

The cost of transferring an ISA 

There may be charges when you transfer your ISA. This depends on: 

• Your current ISA provider. Some providers charge a fee to transfer. 
• Your current ISA product. Check your terms and conditions as you may lose interest or incur a charge for things like closing the ISA early or making unplanned withdrawals. 

Work out any fees and charges or loss of interest to see if it’s worth transferring your ISA. 

How long does an ISA transfer take? 

An ISA transfer should take around: 

• 15 business days if you’re transferring a cash ISA 
• 30 business days if you’re transferring a different type of ISA, like a Stocks and Shares ISA 

Can I transfer part of my ISA? 

If you want to transfer money from one ISA to another, you can usually transfer all or part of what you've paid into the ISA in previous tax years.

Some providers allow you to transfer just part of what you've paid in this tax year - but not all providers offer this. At Principality we don't allow partial transfers of the current years' contributions. So if you're transferring into or out of a Principality ISA, you'll need to transfer the full amount you've paid in during this tax year.

And if you're transferring from one Principality ISA to another you'd need to transfer the full ISA balance. This applies to the whole amount in the account, no matter when you paid the money in.

Does an ISA transfer affect my ISA allowance? 

If you're transferring an old ISA that you haven’t paid into during the current tax year, your ISA allowance won’t be affected. 

If you close your ISA and withdraw the money to pay into a different ISA yourself, you’ll lose that part of your ISA allowance - and the tax-free* status on the ISA you closed. 

The information in this guide was accurate when published.  

*Tax-free means the interest you earn isn't subject to UK Income Tax and Captial Gains Tax. Tax treatment depends on your individual circumstances and could change in the future.