How to transfer an ISA

At a glance

• Transferring your ISA is a way of moving funds from one ISA to another while retaining your tax-free benefits
• By transferring your ISA, you may be able to take advantage of higher rates being paid elsewhere, or consolidate your finances
• Cash ISA transfers are typically completed within 15 working days.

What is an ISA transfer?

An ISA transfer is a way of moving funds from one Individual Savings Account (ISA) to another without losing its tax-free status. They can be used to move funds between the same type of ISA or between different kinds (meaning you could transfer your savings in a cash ISA to a stocks and shares ISA, for instance).

Why might you transfer an ISA?

There are many reasons why you may want to transfer an ISA, such as:

• Another type of ISA better aligns with your financial goals and personal circumstances (e.g. perhaps you have a cash ISA but want to start investing using a stocks and shares ISA).

• Another account offers higher returns, more investment opportunities or more favourable conditions (e.g. you already have a cash ISA, but another account offers a better interest rate or fewer withdrawal restrictions).

• You want to consolidate multiple accounts with a single ISA.

Whatever your reason, it’s important to use an ISA transfer when moving your funds. If you were to simply withdraw and reinvest your money, you risk using up some or all of your ISA allowance and losing your tax-free wrapper.

2025/2026 ISA transfer rules

Before you start the process of transferring an ISA, there are a number of rules to be aware of for the 2025/26 tax-year:

• All providers must allow ISAs to be transferred out, but they are under no obligation to accept transfers in.

• While you can transfer any type of ISA, it’s at the discretion of your new provider as to which type of ISA they let be transferred in.

• After new rules were introduced in 2024, you can choose to transfer your entire ISA pot or just part of your balance - regardless of when the money was paid in. However, some providers might not offer or accept partial transfers so it’s worth checking the terms of the account.

• There’s no limit on the amount you can transfer, nor any restrictions on when you can make a transfer. Keep in mind, though, the Financial Services Compensation Scheme (FSCS) only protects balances of up to £120,000 in a savings account or cash ISA and some providers will impose their own rules.

 New ISA transfer rules from April 2027

It is expected that savers under 65 will no longer be able to transfer from stocks and shares ISAs and Innovative Finance ISAs to cash ISAs from April 2027.

This follows the Chancellor of the Exchequer, Rachel Reeves, announcing that the total amount of money those under 65 can deposit in cash ISAs each year will be lowered to £12,000 from the 2027/28 tax-year, and will prevent people from finding loopholes in the new rules.

For now, savers can continue to transfer from stocks and shares ISAs and Innovative Finance ISAs but should note that time is likely running out.

How do ISA transfers work?

Once you’ve decided to transfer your ISA, here are a few steps you need to follow:

1. Check your provider accepts transfers in

While all providers must allow transfers out, some don’t accept transfers in from all or certain types of ISAs.

This is where our ISA charts can help. By selecting ‘full search’ at the top of a chart, you can change the investment type to ‘ISA transfer’ and filter by accounts that accept transfers in. Then, by clicking ‘product specification’ next to an account on our chart, you can see the different types of ISA it allows transfers from.

2. Check if transfer fees apply

After finding out whether your new ISA accepts transfers in, it’s time to work out whether your current provider charges a fee for transferring out funds. Fixed rate ISAs, for example, sometimes impose a loss of interest penalty on transfers out.

Similarly, you’ll incur a 25% charge for transferring a Lifetime ISA to a different type of ISA before turning 60.

3. Contact your new provider and complete the ISA transfer form

When you’re confident you want to transfer your ISA, you’ll need to contact your new provider and fill out an ISA transfer form. This requires you to provide some personal information, the name and account details of your existing provider, as well as the amount you wish to transfer.

How long do ISA transfers take?

Transferring a cash ISA can take up to 15 days, while transferring other types of ISAs, such as stocks and shares ISAs, make take longer – up to 30 days.

When is the best time to transfer an ISA?

While you can transfer your ISA at any time, some of the best cash ISA rates are often found during ISA season (throughout March and April as one tax-year ends and another begins).

Nevertheless, it’s good practice to review top rates regularly and transfer at a time that suits you.

What types of problems can arise when transferring ISAs?

While the ISA transfer process should be straightforward, issues can arise from time-to-time. Some of the most common include:

• Delays: Although the Government states ISA transfers shouldn’t exceed the above-mentioned timeframes, there are instances where the process takes longer than expected. While frustrating, money held in a cash ISA will continue to earn interest in the existing account until it can be transferred to your new provider.

• Missed returns: If you’re required to sell your investments when transferring between Stocks and Shares ISAs, your funds will temporarily be uninvested, and you may miss out on potential gains.

• Fees and charges: Where significant fees and charges apply, these may outweigh the benefits of transferring your ISA to another provider.

• Incompatible processes: Some providers only allow transfers electronically whereas others send and accept funds to be transferred via cheque. Before starting the transfer process, be sure to check whether your new provider accepts transfers from your current one to prevent any issues further down the line.

If you encounter any of these problems, you can lodge a complaint with your provider. In some instances, you may be entitled to compensation for losses incurred during the transfer. If your complaint is rejected, you could consider raising it higher with the Financial Ombudsman Service.

That being said, a transfer remains the most tax-efficient way of moving money from one ISA to another.