You can transfer an ISA to a new provider without affecting your tax-free status or your annual allowance. ISA transfers are one of the simplest ways to improve your savings return — and they are completely free of charge in most cases. The key rule: always use the official transfer process rather than withdrawing and redepositing, which destroys the tax-free wrapper on the money you withdraw.
Why transfer an ISA?
The most common reason is to get a better interest rate. ISA providers regularly offer their best rates to attract new customers while quietly reducing rates for existing ones. Transferring to a more competitive provider takes as little as 15 working days and could meaningfully improve what your savings earn. You might also transfer to change ISA type — for example, moving from a Cash ISA to a Stocks and Shares ISA as your investment horizon lengthens.
How does an ISA transfer work?
- Choose your new provider — compare rates and confirm the provider accepts ISA transfers
- Apply for the new ISA — most applications are completed online in minutes
- Request the transfer through your new provider — they contact your old provider on your behalf. Do not contact your old provider yourself or withdraw the money — this will lose your tax-free status
- Wait for completion — Cash ISA transfers must complete within 15 working days by regulation
Does an ISA transfer count toward my allowance?
No. Transferring previous years’ ISA balances does not count toward your current year’s £20,000 ISA allowance. You can add new contributions on top of a transfer in the same tax year, up to the standard limit.
Can I transfer a Cash ISA to a Stocks and Shares ISA?
Yes — you can transfer between ISA types freely, as long as the new provider accepts the transfer. However, note that from April 2027, transfers from Stocks and Shares ISAs into Cash ISAs will be restricted for under-65s as part of the new Cash ISA cap rules. For full details, see our guide to the Cash ISA allowance changes.
Can I transfer a fixed rate Cash ISA?
It depends on the provider. Some fixed rate ISAs allow early transfers with a penalty — typically a number of days’ interest. Others don’t allow transfers until the end of the fixed term. Always check the transfer terms before opening a fixed rate ISA if flexibility matters to you.
What is a partial ISA transfer?
Some providers allow you to transfer part of your balance rather than the whole amount. This can be useful if you want to keep some money with your current provider while moving the rest to a better rate. Not all providers accept partial transfers — check before applying.
Frequently asked questions
How long does an ISA transfer take?
Cash ISA transfers must complete within 15 working days by regulation. Stocks and Shares ISA transfers typically take 30 days or more as investments may need to be sold and repurchased.
Will I lose interest during an ISA transfer?
Most providers continue to pay interest during the transfer. Check with both your old and new provider before initiating a transfer to confirm how interest is handled during the transition period.
What happens if I withdraw instead of transferring?
Withdrawing and redepositing destroys the tax-free wrapper on the withdrawn amount. That money would then count as a new contribution toward your current year’s allowance. Always use the official transfer process to preserve your tax-free status.
Can I transfer an ISA to my spouse?
No — ISAs are individual accounts. However, when a spouse or civil partner dies, the surviving partner can inherit the ISA allowance through an Additional Permitted Subscription (APS).