Can I move my ISA money?

4 July 2012

Q

In one financial year is it possible to open a cash ISA with one provider and then at some stage transfer the whole amount (in other words, close that account) to a new cash ISA with another provider? Or is this not allowed because it would mean opening two ISAs in one tax year, which I believe is against ISA rules.
From
RJ/London

A

Providing you are only transferring and not making additional contributions, then what you suggest is indeed possible.

Essentially, you can transfer your ISA from one manager to another whenever you want. This means you may transfer your current-year ISA subscription, all or part of your previous year’s ISA subscriptions and any interest added to either of them.

If the ISA you wish to transfer contains only money from this tax year, you have to transfer the whole account and not just part of it.

Apart from transferring to another cash ISA, you can also transfer your cash ISA to a stocks and shares ISA. If you took this route, your subscription for the current tax year is treated as if it had been made to the stocks and shares ISA from outset. This means you are regarded as never having subscribed to the cash ISA in the first place.

You can therefore subscribe the maximum in another cash ISA later in the current tax year.

The best instant-access cash ISAs

PROVIDER RATE TRANSFERS IN? ACCESS
Cheshire BS Direct Cash
ISA (Issue 3)
3.35% No Post
Santander Direct ISA
Issue 9
3.3% Yes Online, telephone,
cashpoint
Post Office Premier
Cash ISA
3.01% Yes Telephone, branch, post
ING Direct Cash ISA 3% No Online, telephone
Halifax ISA Saver Online 2.75% Yes Online