If you are thinking about transferring your ISA to us or another provider, it is important you transfer it in a specific way to ensure you do not lose your savings’ tax free status.
We have created a guide on ISA transfers to ensure you know everything you need to know about ISA transfers before changing providers.
What is an ISA transfer?
An ISA transfer is when you move your ISA to another provider, in a specific way, so that your savings or investment does not lose its tax free status.
People may choose to transfer their ISAs if they believe they can get a better rate elsewhere or in order to have all of their ISAs with one provider, to help them manage their accounts.
You cannot just withdraw the cash from your ISA and then deposit it elsewhere, as this will mean that you lose the tax-free status on your savings.
Transferring an ISA:
- Transferring a Cash ISA
If you have one or more cash ISAs that you wish to transfer, you have the options of:
– transferring to a new cash ISA
– transferring to an existing ISA you hold elsewhere
– transferring to an existing ISA with the same provider
– transferring to a new or existing Stocks & Shares ISA
- Transferring a Stocks and Shares ISA
If you have one or more stocks and shares ISA, you have the options of:
– transferring to a new stocks and shares ISA
– transferring to an existing stocks and shares ISA
– transferring to a new or existing cash ISA
Please Note: You may have to pay a transfer out fee.
- Transferring a Junior Stocks and Shares ISA
– You cannot transfer a Junior ISA into adult cash ISA or stocks and shares ISA until the term ends.
– You can only transfer to another Junior ISA.
The registered holder of the Junior ISA will be responsible for signing the transfer on behalf of the child, unless you are aged between 16 to 18 years old and the Junior ISA is in your name, in which case you will be responsible for signing for the transfer.
You should be aware that when the child reaches age 18, the Junior ISA will automatically be converted into an Adult ISA.
How often can I transfer my ISA?
You can transfer in to an ISA as often as you like. You can transfer funds held in an ISA from one provider to another as long as they accept transfers.
Please note: Some providers will charge interest penalties for transferring money out before the term ends, which could affect any benefits of getting a better rate elsewhere. Therefore, it is important that you make sure to check the terms and conditions.
How much can I transfer to a new ISA?
Transfers aren’t governed by the usual paying-in limit (currently £15,240) so you can transfer as much as you wish to.
However, if the ISA only contains savings paid in during the current tax year, you must transfer the full amount to the new provider.
Please note: Not all providers allow partial transfers of previous years’ savings.
How long does a transfer take?
This depends on whether you are transferring your cash ISA or your stocks and shares ISA.
Your transfer should be completed within these timescales:
- Cash ISA: 15 working days
- Stocks and shares ISA: 30 working days
How do I transfer an ISA?
It’s simple to make the transfer – once you’ve done your research and have found the account you wish to transfer to, and have checked that the provider allows transfer, all you have to do is open the new account and complete a short transfer form that you can acquire from the provider.
After that, it’s all in the hands of the providers – they’ll complete the transfer process.
If you have any questions about transferring your ISA to Shepherds Friendly Society, feel free to contact our customer services team who will be happy to help.
You should remember that when transferring into a stocks and shares ISA that the amount you get back will depend on the performance of the fund your money is invested within, and that your capital is at risk.