Topping up or transferring ISA to a new provider? you got to read this

How to transfer your new ISA to a new provider

12:55 20 November 2014

Savers are- as from the 1st of July 2014- allowed to deposit up to £15,000 into their cash ISAs. As you might have known, this is the largest increase to ISA limits ever. This is one of the several changes being applied to the ISA; Britain’s most favoured saving account. However, confusion is rife regarding the latest changes on the Isa, now called NISA or the New ISA. The following is how (not) to transfer your ISA from one provider to another and from a cash ISA to a stocks and shares ISA.

 

If you are considering transferring your cash ISA to another provider, you can opt to top up the ISA in use for the current fiscal year and then transfer the total sum to a new bank or building society, if they accept ISA transfers that is. Then again, you can transfer your ISA in the full amount that you have subscribed to for the on-going tax year and then replenish with your new provider.

 

If the NISA you want to transfer is not easy access, firstly check for the notice period and any penalties that may be applied if you transfer. The rule of thumb when seeking ISA transfer is to get in touch with the provider you are switching to and fill the necessary application forms. The prospective provider will then request transfer from your current provider.

 

Do not cash in your NISA before it is deposited in your new provider or else you will lose the tax-free status for an indefinite period. Your provider should be able to switch your money between ISA accounts for you. Follow the same process to invest your money saved in cash NISAs into a stock and shares NISA. The latest changes also make it possible for savers to switch money in a stocks and shares ISA to a cash one.