Understanding ISA transfers

What is an ISA transfer? 

An ISA transfer is when you move your savings from one ISA to another. Either to a different provider or to a different ISA with the same provider.

If you withdraw the money and pay it into a new ISA yourself, you risk losing your tax-free* benefits.  Always follow an official ISA transfer process to move your money without losing its tax-free status.

*Tax-free means the interest you earn isn't subject to UK Income Tax and Captial Gains Tax. Tax treatment depends on your individual circumstances and could change in the future.

Why transfer an ISA?

You may choose to transfer an ISA to move to a better interest rate.

Perhaps you want to move your money to a different type of ISA.

Or maybe you want to bring multiple ISAs together and make them easier to manage.

An ISA transfer lets you do this while keeping your savings tax-free.

What types of ISA can you transfer? 

You can usually transfer:

• a cash ISA to another cash ISA
• a cash ISA to a stocks & shares ISA
• a stocks & shares ISA to a cash ISA.

The exact options depend on the provider and the type of ISA you hold.

Before you start, check if:

1. Your current ISA charges a fee to transfer out.

2. You'd lose interest for closing or transferring early.

3. The ISA you’re moving to accepts transfers in.

How to transfer an ISA

To transfer an ISA from one provider to another, you should always contact your new provider. They should have an official process to transfer the money for you.  

Following these steps helps make sure your savings keep their tax-free status:

1. Choose the ISA you want to transfer to.

2. Check your new provider lets you move money in from another provider.

3. Follow your new provider's ISA transfer process. 

4. Let the providers handle the transfer for you.

Make an ISA transfer with Principality

Want to transfer an ISA with Principality? Visit our ISA transfers page for full details and FAQs. 

Important things to remember

Always use your provider’s ISA transfer process. Don’t withdraw the money yourself.

Check your providers rules before making a transfer. You might lose out on interest or have to pay a fee when making an ISA transfer.

Make sure you understand whether you need to transfer the full balance, or if your provider lets you make partial transfers. You can't make a partial transfer between Principality ISAs. You have to transfer all the money from one ISA to another.