- What is an ISA transfer?
- Possible reasons for an ISA transfer
- 1. Reducing fees and charges
- 2. Consolidating multiple accounts
- 3. Changing your strategy
- 4. Poor service
- Types of ISA transfers
- ISA transfer rules
- 1. Use the transfer service
- 2. Transfer the total amount from the current tax year
- 3. Options for ISAs from previous years
- How to transfer an ISA
- How long does an ISA transfer take?
- Can you withdraw money while transferring?
- Transferring an ‘active’ Cash ISA
- Can you transfer an ISA to someone else?
- Things to look out for when transferring your ISA
- Not all ISAs accept inward transfers
- Fees and charges
- Penalty fees
- Should you transfer your ISA?
An ISA is a great way to invest and grow your savings tax free. If you already have one, then you can transfer it to another provider of your choosing, as long as you follow the ISA transfer rules. If you are considering an ISA transfer, then you’ve found the right article.
What is an ISA transfer?
An ISA transfer involves moving your savings or investments from one ISA account to another. And transfers can be executed on every type of isa account including:
- Cash ISA
- Stocks and Shares ISA (also known as an investment ISA)
- Lifetime ISA
- Innovative Finance ISA
- Junior ISA
For example, you can transfer your Cash ISA to a Stocks and Shares ISA, or transfer your ISA from one provider to another.
The key thing to remember is that it does not involve you physically removing the funds from one account or provider yourself and investing them with another.
Possible reasons for an ISA transfer
There are a number of reasons you might want to transfer your ISA. Below are four common examples.
1. Reducing fees and charges
Even if you have multiple Stocks and Shares ISAs with good providers, the fees can add up. This will have a negative effect on your investments in the long term. You may be able to find a cheaper deal from another ISA provider elsewhere.
2. Consolidating multiple accounts
Having multiple ISA accounts can potentially be confusing and difficult to manage. Transferring your ISA savings or investments into a single account can make it much easier to keep track of your savings and investments.
3. Changing your strategy
Perhaps you’ve always had a Cash ISA and are now considering investing some of your savings. Transferring your Cash ISA to a Stocks and Shares ISA will allow you to do this without impacting the annual ISA allowance.
4. Poor service
The returns and level of service you receive can vary from one ISA provider to another. If you think you are not getting the best deal from your existing provider, then you may want to consider moving your ISA.
Types of ISA transfers
There are three main types of ISA transfers available:
- Between different providers
- From one product to another with the same provider
- From one type of ISA to another (e.g., from a Cash ISA to a Stocks and Shares ISA)
The best option for you will depend on your personal circumstances.
ISA transfer rules
It is important to follow these rules when making a transfer. If you don’t, then you may end up losing out on your ISA’s tax benefit.
1. Use the transfer service
If you withdraw savings from previous years without using the transfer service or completing an ISA transfer form, then the sum added to a new ISA will be treated as the current year’s contribution. In effect, you will lose the tax-free allowance from the previous tax year.
2. Transfer the total amount from the current tax year
If you want to transfer an ISA in the current tax year, then you will need to transfer the whole amount to retain ISA status. You can continue to add savings up to the current personal annual ISA allowance of £20,000.
3. Options for ISAs from previous years
While you are limited in the type of transfer you can do with your current ISA, there are a greater number of options available for ISAs from previous years.
Transfers from previous years are unlimited, meaning you can make any number of ISA transfers in a given year, as long as you use the transfer service or complete an ISA transfer form. Similarly, there is no limit on the total amount that can be transferred from previous years. These transfers are not counted in your current year’s allowance.
So, for example, say you have a current ISA with £5,000 and you transfer in £20,000 from a different ISA that you opened last year. You can still save an additional £15,000 in your current ISA because the amount transferred is not counted in the current year’s personal allowance.
You also don’t have to transfer all of a previous year’s ISA. Some accounts will also allow you to transfer just a portion of an old ISA into a current one.
Good for long-term, cost-conscious investors who want lots of flexibility
Interactive Investor Stocks and Shares ISA *
| Trading Commission | From £3.99 |
| Account Management Fee | From £4.99 (Depending on Subscription Plan) |
- Pros & Cons
- Fees & Charges
Pros
- Fixed monthly subscription fees.
- Free monthly trades included depending on plan.
- No fees on regular investing schemes.
- Wide investment range across global markets.
- Curated investment tools (Quick-Start Funds, Super 60 shortlist).
- Regular investing tools to automate wealth-building.
- Solid educational resources and expert insights.
- User-friendly platform for managing portfolios.
- Access IPOs and bond launches.
- Hold and earn interest on foreign currencies.
Cons
- Monthly fees can feel steep for small portfolios.
- No fractional share trading.
- Free trade credits expire every 31 days.
- Large trades (greater than £25,000) can incur additional costs.
- No AI-driven tools or robo-advice features.
- Alerts and watchlist capabilities are pretty basic.
Subscription Plans
- Investor Essentials (£4.99 per month) – This is the entry-level subscription for investors with less than £50,000. It allows for free regular investing where a small sum of capital is drip-fed into a selection of eligible investments at no cost. You can also include a Stocks and Shares ISA under this plan.
- Investor (£11.99 per month) – In addition to the features of the Investor Essentials plan, the Investor plan removes the £50,000 limit, allows the addition of Junior ISAs, provides a free membership to two family or friend members, and grants one free trade per month.
- Super Investor (£19.99 per month) – In addition to the features of the Investor plan, the Super Investor plan grants up to four free trades per month, as well as up to five free memberships to family and friends. It also provides discounts on international trading fees.
Additional Fees
- Share dealing (online) – The standard trading fee for UK shares and funds, and US stocks is £3.99 across all subscription plans. For any other international investment, the trading fee is £9.99, or £5.99 when using the Super Investor plan.
- Share dealing (phone) – II charges a flat £49 for trades executed over the phone. Note that free trade credits from subscriptions cannot be used for phone trades. Furthermore, buying or selling shares listed on exchanges in Sweden or Switzerland can only be executed over the phone.
- Large transaction fees – When buying or selling UK shares with a trade value exceeding £100,000, there is an additional £40 fee. When buying or selling US shares with a trade value exceeding £100,000, there is a 0.04% fee. When buying or selling other international shares with a trade value exceeding £25,000, there is a 0.1% fee.
- Dividend Reinvestment – £0.99 per automatic reinvestment.
- Foreign exchange – When trading internationally, Interactive Investor will charge a foreign currency exchange fee unless you have sufficient funds of the required currency already in your account. The fee depends on the transaction size.
- £0 to £24,999 – 1.5%
- £25,000 to £49,999 – 1.25%
- £50,000 to £99,999 – 1.0%
- £100,000 to £599,999 – 0.5%
- £600,000 or more – 0.25%
- International investor fee – If you are no longer a UK resident, Interactive Investor will still allow you to keep an existing account. However, there is an additional £4 a month subscription fee required. However, as a non-UK tax resident, you cannot continue to contribute to a Stocks and Shares ISA.
- Deposit fee – None.
- Withdrawal fee – No fees for next-day withdrawals. A £15 fee for same-day withdrawals, which must be requested before 2pm.
How to transfer an ISA
The exact ISA transfer process will vary from provider to provider. The most important thing to remember is that you must use your provider’s ISA transfer service. Don’t try and withdraw the funds yourself.
To find out the specific details about how to do this, you should check with your provider. The information should be displayed clearly on their website and in the documents you received when you first set up your ISA.
How long does an ISA transfer take?
If you’re transferring a Cash ISA, then it should take about three weeks. The government website states these transfers should take no more than 15 working days. Other types of transfers can take a bit longer — up to 30 calendar days.
Can you withdraw money while transferring?
You can’t withdraw money during the transfer process without losing your tax-free benefits. If you want to withdraw money, then it is better to wait until your transfer is complete.
Remember, certain ISAs — like the Lifetime ISA — have penalties if you withdraw money early or not for the intended purposes.
Transferring an ‘active’ Cash ISA
You can transfer an active Cash ISA to a new manager. If you transfer your current-year ISA, then your bank should tell your new ISA manager how much more you can pay in during the tax year without exceeding the allowance.
However, you can only have one ‘active’ Cash ISA each year, so you must transfer the full amount. You can’t split your allowance between different ISA managers.
Can you transfer an ISA to someone else?
No, you can’t directly transfer an ISA to someone else. If you want to move funds from your ISA to one in a different name, then you’ll need to withdraw your money or sell your investment and then give the funds to the other person.
Things to look out for when transferring your ISA
Before you commit to transferring your funds, there are some important considerations to think about.
Not all ISAs accept inward transfers
This varies between providers, so you should always check with them first to avoid being disappointed and not being able to place your ISA where you want.
Fees and charges
Many providers charge for an outward transfer, so it’s worth checking beforehand. This is particularly true if you’re moving to avoid higher fees. You could end up inadvertently paying more despite moving to a cheaper provider!
If you want to transfer a Stocks and Shares ISA, then you should also keep an eye out for any share dealing charges. These can add up quickly.
Penalty fees
Some transfers will incur penalty fees, which can become quite costly.
If you have a fixed-term account, then you will be charged a penalty fee if you transfer before the end of the term. Similarly, if you have a notice account, then you will be penalised if you move your funds before the end of the notice period.
Should you transfer your ISA?
This is a personal decision and one that will depend on your circumstances. If you are considering an ISA transfer, then it is worth speaking to your provider about the ISA transfer rules and their policies. Your provider will explain the terms and conditions that you need to know before you commit.
If you’re interested in transferring your Stocks and Shares ISA, then take a look at our top-rated Stocks and Shares ISAs to help you find the account that’s right for you.
Great for frequent investors or those who prefer funds
Hargreaves Lansdown Stocks and Shares ISA *
| Trading Commission | £5.95 – £11.95 |
| Account Management Fee | From £0.00 |
- Pros & Cons
- Fees & Charges
Pros
- Strong reputation and track record.
- Uninvested cash earns interest.
- Access to thousands of UK and international investments
- Active investors enjoy reduced trading charges.
- No inactivity or withdrawal fees.
- Intuitive platform and mobile app.
- Free access to investment research and market insights.
Cons
- Standard dealing charges are higher than average.
- Limited charting and technical tools.
- Relatively high annual fees for fund, shares, and ETF holdings.
- No support for fractional share trading.
- Share dealing (online) – By default, HL charges £11.95 per trade. However, if you execute 10 or more trades in a single month, this rate drops to £8.95, or £5.95 if you execute 20 or more trades.
- Share dealing (phone & post) – HL charges 1% of the trade value as a fee when trading via the phone or through postal dealing. There is a minimum £20 trading fee, but the maximum charge is £50 per trade.
- Foreign exchange – When trading internationally, HL charges a foreign currency exchange fee depending on the size of the transaction. This fee is 1% for the first £5,000, 0.75% for the next £5,000, 0.5% for the next £10,000, and 0.25% for any amount over £20,000.
- Fund charges – When holding investment funds in an account, HL charges an annual holding fee. The amount is based on the value of your investment. The first £250,000 incurs a 0.45% fee. If investments are worth between £250,000 and £1m, the fee decreases to 0.25%. If investments are worth between £1m and £2m, the fee decreases again to 0.1%. And any value beyond £2m incurs no fees.
- Account charges – Beyond the previously mentioned Fund charges, investors also have to pay a 0.45% annual fee for all non-fund investments up to a maximum of £3.75 per month.
- Deposit fee – None.
- Withdrawal fee – None.
The content in this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.