How to transfer your cash ISA to a different account

We appreciate how important your savings are to you, and here at the Newcastle we would like to help you make the most of them.

We appreciate how important your savings are to you, and here at the Newcastle we would like to help you make the most of them. 'Cash ISAs are great for saving (up to your annual allowance) without having to pay tax on your interest. Your annual ISA allowance for the 2018/2019 tax year is £20,000’.

However, if you feel that you are not getting the best ISA deal with your current bank or building society, you can transfer your Cash ISA to another account provider at any time, and the process is much easier than you may think!

Below, we run through the simple steps to follow if you decide to transfer your Cash ISA, and offer our advice to help you make sure you’re on the right track to achieving your savings goals.

What are the first steps to transfer my ISA?

Not all providers accept ISA savings transfers. So your first step should be finding not just the Cash ISA with the best rate, but also making sure that the provider will allow you to make the transfer. You will only be able to transfer the current year’s ISA subscription in full; your previous years’ subscription, however, can be transferred in parts.

Nonetheless, be wary that some ISA products don’t allow partial transfers. As a solution to this, we have created our exclusive Flexible ISAs, which enable you to move your money in and out of an ISA account without it counting against your annual allowance, provided that it is replaced within the same tax year.

It’s also worth considering that although all Cash ISA providers have to allow you to remove your money from your account, some may issue a penalty if you choose to do so. This is often typical of Fixed Rate ISAs that are yet to mature, and as a result you may be penalised in the form of a reduction in interest.

How do I apply to transfer my ISA?

Once you’re sure of the right provider for you, the next step is to contact them and fill out an ISA transfer form to get the ball rolling. The form is relatively simple, and will usually require no more than your basic account details. Some providers even allow you to set up an ISA transfer on the phone or online – so you can arrange your Cash ISA transfer from the comfort of your own home!

It’s very important that you follow the correct processes through your new provider, and don’t attempt to withdraw your money without filling in the necessary forms. This is because if you do choose to withdraw the money yourself, your savings may lose their tax-free status.

How long do I have to wait for my money to transfer?

Under regulations introduced in 2011, transferring a regular Cash ISA should take no more than 15 working days. Though it should be noted that it can be up to 30 days for those who are transferring stocks or shares. Nonetheless, some providers may even begin paying interest on balances from the day they receive your signed form.

However, if your transfer happens to take a little longer than this then try not to worry, simply contact your new provider and they’ll be happy to clear things up for you.

What other options do I have?

There are plenty of Cash ISA options available to you, such as Fixed Rate and Easy Access ISAs. To make the very most of your annual ISA savings allowance, also consider our exclusive CustomISA function, which allows you to spread your annual tax-free allowance across as many Newcastle Building Society ISA accounts as you like, helping you to reach your savings goals faster.

If you’re saving for your first home, our Cash Lifetime ISA can boost your savings with a 25% government bonus, or you can be rewarded with a competitive interest rate of 2.56% with our Help to Buy: ISA.

Whatever your reason for transferring your ISA to a different provider, we hope you’ve found our guide useful. Should you have any queries about Cash ISAs or other types of savings accounts with Newcastle Building Society, call us or book an appointment at your local branch now.