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 with an annual allowance of £20,000
You can open and pay into multiple ISAs of the same type in one tax year
You can make partial transfers, but not all banks offer this
Individual Savings Accounts (ISAs) offer a tax-free way to save and invest. With an annual allowance of £20,000, they are popular with many savers and investors.
As announced in the budget in November 2025, the annual cash ISA limit will be £12,000 from April 2027, unless you are aged 66 or over.
But what happens when you find a better deal or your financial goals change?
Transferring your existing ISA to a new account is a straightforward process, but it's crucial to do it correctly 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. This can be done between different types of ISAs, such as from a cash ISA to a stocks and shares ISA, or you can move money between the same type of ISA but with different providers.
When you transfer money between ISAs, it’s crucial that you don’t just withdraw your funds and reinvest them, but follow the correct process to ensure the tax-free status remains intact. Your new ISA provider will take the lead on this.
Can you transfer all types of ISA?
Not all banks and building societies accept transfers. This is particularly true for top-paying, fixed rate cash ISA accounts that may only be open to new funds for the current tax year. Before opening a new ISA, check to see if transfers are allowed.
From April 2027, you will no longer be able to transfer money from stocks and shares ISAs and innovative finance ISAs into cash ISAs.
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
Request the transfer by filling out a form provided by the ISA provider you're transferring to
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:
Transferring between cash ISAs or into a stocks and shares ISA is usually free, unless you're moving money from a fixed rate, fixed-term account that has an early withdrawal penalty
Moving from a stocks and shares ISA to a cash ISA might involve transaction charges
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 all other transfers – including moving from cash to stocks and shares, stocks and shares to cash, or between investment ISAs – 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, you can usually make a partial ISA transfer, but it depends on the type of ISA and your provider. For ISAs from previous tax years, you can transfer as much or as little as you like.
However, if you’re transferring money paid in during the current tax year, you’ll typically need to transfer the full amount. Not all providers accept partial transfers, so it’s important to check the terms before applying and always use the official transfer process to keep your tax-free status intact.
Do ISA transfers affect my annual allowance?
No, transferring an ISA does not count towards your annual £20,000 ISA allowance, as long as you follow the official transfer process.
Can I transfer an ISA to another person?
No, ISAs cannot be transferred to another individual. However, spouses and civil partners may benefit from additional ISA allowances in certain circumstances, such as inheritance rules when one party dies.
Will I lose interest or be out of the market during a transfer?
If you’re transferring a cash ISA, interest is usually preserved during the process. 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?
Yes, you can transfer an ISA at any time, including requesting a transfer in advance. To avoid early closure charges on a fixed rate cash ISA, schedule the transfer for after the maturity date.
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 issues with an ISA transfer, follow these steps:
Start by following your bank or building society’s official complaints procedure for ISA or savings transfers
Provide all necessary evidence to support your complaint
Wait eight weeks for a response from the provider
If you're not satisfied with the outcome, you can escalate the matter to the free Financial Ombudsman Service
How to choose the best ISA to transfer to
First, decide whether you want to transfer to a cash or stocks and shares ISA. Cash ISAs offer lower risk and predictable returns, while stocks and shares ISAs carry more risk but the potential for higher 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.
Author
Rebecca Goodman
Personal Finance & Insurance Expert
Rebecca is an award-winning financial journalist with over a decade of experience writing for print and online media. Her mission is to take the jargon out of personal finance and to help everyone...
Reviewer
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
