Transferring a cash ISA

There are a number of reasons to transfer an ISA. The good news is, whether you’re on the lookout for a more competitive interest rate or you would like all of your cash ISA funds to be with one provider, transferring your cash ISA is a simple process.

When transferring money from one ISA to another, you must transfer the full amount of your current year's ISA subscriptions. However those from previous years can be transferred either in part or in full.

When transferring an ISA, you must allow your providers to arrange the transfer on your behalf. Failure to do this may mean your savings lose their tax-free status.

See below for a step-by-step guide to transferring your cash ISA. 

Find the right cash ISA rate for you

If you’re on the lookout for an alternative cash ISA provider, it’s not just interest rates that should influence your decision. It’s a good idea to consider factors such as how quickly you will need access to your finances and what you’re using your cash ISA to save for, such as your first home or retirement, to find the best cash ISA for you.

Factor in penalties

If you’re working out the benefits of transferring your cash ISA, have you factored in the possibility of penalties from your current provider? All banks and building societies will let you remove your money if you choose to do so. However, you may be penalised in the form of a reduction in interest.

If your provider does charge you for transfers, you should work out whether the cost of the penalty is worth the advantages of moving to a new bank or building society.

Finally, you should always make sure you choose a new provider that accepts transfers, as not all banks and building societies are obliged to do so.

Fill in an ISA transfer form

Once you have found the right bank or building society for you, your new provider will ask that you fill in an ISA transfer form. Here, you will supply your new provider with basic personal information and your current account details.

Your ISA transfer should take no longer than 15 days. However, if you’re still waiting for your transfer to come through after this time, you should contact your provider as soon as possible.

Stocks and Shares ISA transfer rules are similar to those of standard cash ISA transfers. You will need to fill out an ISA transfer form with your new provider to indicate which investments you’d like to sell.

The full timescale for this type of transfer can vary, depending on the type of investments you’re selling. However, once your investments have been sold, the transfer should be complete within 30 days.

All banks and building societies will let you remove your money but you may receive a reduction in interest. If your provider does charge you for transfers, you should work out whether the cost of the penalty is worth the advantages of moving to a new bank or building society.

It’s a good idea to consider factors such as how quickly you will need access to your finances, too. Some ISAs provide instant access, whereas other do not.

Finally, you should always make sure you choose a new provider that accepts transfers, as not all banks and building societies are obliged to do so.

Should you like to transfer your ISA to us, simply give our Savings Team a call or visit us in-branch to get the ball rolling.

For more information on cash ISAs, refer to our comprehensive guide to cash ISAs. For more information on setting up a cash ISA with Newcastle Building Society, view our full range of products or contact us.​

With Newcastle Building Society, transfers from other Lifetime ISAs are now available, too.