All you need to know about switching your ISA funds
Transferring an ISA isn’t complicated, but you do have to take the correct steps to avoid losing the tax-free benefit
Key takeaways
ISAs are a tax-efficient way to save or invest, with an overall annual allowance of £20,000.
From 6 April 2027, the annual cash ISA limit will be £12,000 for most people under 65. The £20,000 limit will apply from the start of the tax year in which you turn 65.
For most ISAs, you can transfer all or part of your money, including money paid in during the current tax year, although provider and ISA-specific restrictions can apply.
Individual Savings Accounts (ISAs) offer a tax-free way to save and invest. The overall annual ISA allowance is £20,000 for the 2026/27 tax year.
From 6 April 2027, the annual cash ISA limit will be £12,000 for most people under 65. The £20,000 cash ISA limit will apply from the start of the tax year in which you turn 65. The overall ISA allowance will remain £20,000.
But what happens when you find a better deal or your financial goals change?
Transferring your existing ISA to a new account can be straightforward, but it's important to follow the correct process to retain its tax-free status.
What is an ISA transfer?
An ISA transfer is the process of moving your savings from an existing ISA account to a new ISA account. Subject to the transfer rules that apply, this can be between different types of ISA, such as from a cash ISA to a stocks and shares ISA, or between the same type of ISA with different providers.
Always use the official ISA transfer process rather than withdrawing the money yourself and paying it into the new account. Your new provider will normally arrange the transfer.
Can you transfer all types of ISA?
Not all ISA providers accept transfers, so check before opening your new account. Some products may only accept new subscriptions rather than money transferred from another ISA.
You should also check the rules for the type of ISA you hold. Lifetime ISAs and Junior ISAs, for example, have additional transfer restrictions.
🚩 From 6 April 2027, people under 65 will no longer be able to transfer money from stocks and shares ISAs or innovative finance ISAs into cash ISAs. Transfers from cash ISAs to non-cash ISAs will still be allowed. This restriction won’t apply from the start of the tax year in which you turn 65.
What should I consider before transferring an ISA?
Before you transfer money from one ISA to another, there are several factors to consider:
Can the ISA you're transferring to accept transfers from other accounts?
Does the ISA you'd like to transfer your money into offer better returns than your current one?
Are there any charges or penalties for transferring your ISA?
Remember, always use the new provider's transfer system to avoid any tax complications.
What are the benefits of transferring an ISA?
Transferring your ISA can offer several advantages:
Access to potentially better interest rates on your savings or returns on your investments
Consolidation of multiple ISAs into one account for easier management
The transfer process is typically simple as it is handled by the new provider
How do I transfer an ISA?
The process for transferring an ISA is similar whether you're dealing with cash or stocks and shares ISAs. However, fees and transfer times may vary. Here's what you need to do:
Compare ISA deals to find the best option for your needs.
Check for any charges that may apply to your transfer.
Look to see if the new ISA accepts transfers in.
Ask the new provider to arrange the transfer, usually by completing its ISA transfer form.
Will I be charged for transferring an ISA?
You might be charged for moving an ISA but it all depends on the type of transfer:
Check whether either provider charges a transfer or exit fee.
If you're transferring a fixed-term or notice cash ISA before maturity, you may also face an early-access or interest penalty.
Investment ISA transfers may involve dealing or other transaction charges, particularly if investments need to be sold.
How long do ISA transfers take?
ISA transfer times depend on the type of account and what you’re moving. Under UK guidelines, transfers between cash ISAs should be completed within 15 working days.
For other types of ISA transfer, providers are expected to complete the process within 30 calendar days.
In practice, timings can vary, particularly where investments need to be sold and delays can also occur between providers.
If your transfer exceeds expected timelines (15 working days for cash, 30 calendar days for others), you can complain to your provider and may be entitled to compensation, such as lost interest.
Can I do a partial ISA transfer?
Yes. For most ISAs, you can transfer all or part of your money, including money paid in during the current tax year, although provider and ISA-specific restrictions can apply.
Not every provider accepts partial transfers, so check the terms of both your existing and new ISA before applying.
Always arrange the transfer through your new ISA provider rather than withdrawing the money yourself. This helps protect the money's tax-free ISA status.
Do ISA transfers affect my annual allowance?
No. Money moved using the official ISA transfer process does not count as a new subscription towards your £20,000 annual ISA allowance.
This is different from simply withdrawing money and paying it into another ISA yourself. With a non-flexible ISA, money you withdraw generally cannot be replaced without using some of your available annual allowance. Flexible ISAs can allow you to withdraw and replace money within the same tax year without reducing your allowance, subject to the account's terms.
Can I transfer an ISA to another person?
You can't transfer your ISA to another person. However, if an ISA holder dies, their surviving spouse or civil partner may be entitled to an additional ISA allowance under separate inheritance rules.
Will I lose interest or be out of the market during a transfer?
With a cash ISA transfer, check with the providers how interest will be treated while the transfer is taking place.
For stocks and shares ISAs, your investments may be sold and you could be temporarily out of the market, meaning you might miss gains (or avoid losses) depending on market movements.
Can I book an ISA transfer in advance?
You may be able to arrange an ISA transfer in advance, depending on the providers involved.
If you have a fixed-rate cash ISA, check its maturity date and any early access charges before requesting a transfer. Starting the transfer too early could result in a penalty or loss of interest.
Can I withdraw money during the ISA transfer?
Policies on withdrawals during an ISA transfer vary. Some may allow partial withdrawals, while others may not permit any withdrawals until the transfer is complete. If you’re unsure, check the terms and conditions with your ISA provider.
How do I complain about an ISA transfer?
If you encounter problems with an ISA transfer:
Follow your bank, building society or investment provider's formal complaints procedure
Provide any relevant evidence, such as transfer requests or correspondence.
The provider generally has up to eight weeks to send you its final response.
If you're unhappy with the response, or you don't receive one within the time limit, you can take your complaint to the Financial Ombudsman Service for free.
How to choose the best ISA to transfer to
Cash ISAs don't expose your money to investment-market risk and pay interest, although the rate may be fixed or variable. Stocks and shares ISAs involve investment risk, so their value can rise or fall, but they offer the potential for greater long-term growth.
If you're looking for a cash ISA
Compare headline interest rates, but also check how long any bonus rates last
Consider whether you need easy access or can lock funds away for a fixed term
Be aware of any charges or loss of interest for early access
Look at customer feedback and how smoothly they handle transfers
If you're looking for a stocks and shares ISA
Ensure the funds or assets match your appetite for risk
Check platform fees, fund charges, and any dealing costs
Find out whether the provider will charge to transfer, especially if assets need to be sold and reinvested
Review their platform, tools, and reputation to ensure you feel confident managing your investments
Personal Finance Expert
Expert quote
Transferring your ISA can be a simple way to make your money work harder, whether that’s securing a better interest rate or accessing stronger long-term investment growth.
Always use the official ISA transfer process to protect your tax-free status, and check for any exit fees or restrictions before you move. If you’re transferring investments, be aware that timing and market movements can affect your returns.
The best ISA for you will balance returns with the right level of access, risk and fees"
Other useful guides
To further your understanding of ISAs and related topics, explore these resources:
Compare ISAs with MoneySuperMarket
Before you choose a new ISA account it’s important to shop around and compare the different types of ISA on offer and the potential returns they offer.
MoneySuperMarket can help with your search as we list ISA accounts from a range of leading UK providers.
For cash ISAs, you can compare rates of all our best savings accounts – see if they’re fixed or variable rates – or if they include a bonus rate.
For stocks and shares ISAs, we provide a list of leading ISA providers with clear information on key details such as fees, minimum investments and whether they accept transfers.
Once you’ve made your choice you can simply click through to the provider to start opening your new ISA.
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