Transfer your ISA to The Cambridge Building Society

Transfer your ISA to The Cambridge Building Society

If you’re considering the next best steps for your ISA, transferring your ISA could be a simple way to get more from your savings. 

Whether you’re transferring for a better rate, preferred customer service, or to consolidate your ISAs together, there are a number of reasons a cash ISA transfer might be preferable. Whilst there are some cash ISA transfer rules, the process is relatively simple.

Why Transfer your ISA?

There are several reasons why transferring your ISA could benefit you: 

● Consolidation: Combining multiple ISAs (especially older ISA pots) makes them easier to manage and track.

● Better investment options and flexibility: Depending on your circumstances, you may benefit from switching to a different type of ISA product. For example, from an easy access to a fixed rate ISA. 

● Better returns & rates: Switching provider, or changing your ISA product with your current provider, could give you access to better rates and returns.

● Lower fees: Fees can vary between providers costs vary, so switching could reduce what you pay.

ISA transfer rules you should know

Depending on your type of ISA, and the ISA you’re transferring funds into, there are some varying rules.

• You can transfer your ISA to a new provider without losing it's tax-free status.
• If you transfer ISAs from previous tax years, this will not affect your current tax year ISA allowance. You can still add up to £20,000 in the current tax year.
• If you transfer your current tax year ISA, the full amount must be transferred. Transfers don't count as new contributions. However, any money you've already paid in during the tax year will still count towards your £20,000 allowance. You can then top up your ISA to the £20,000 limit for that tax year.

It's important that you do not withdraw the money yourself, as this could affect your ISA's tax free status. And if you re-deposit, this will count towards your annual allowance. When your ISA transfer is in process, your new provider will contact your old provider to move funds securely on your behalf.

Transferring your ISA to us

When you transfer an ISA to The Cambridge, the following rules apply:

• Any money added in the current tax year must be transferred in full.
• Funds from previous tax years can be transferred in full or partially.

You can transfer an ISA at any time, but please check any early access penalties if you’re transferring a fixed-rate ISA. Some providers may also charge exit or transfer fees.

Finally, Lifetime ISAs (LISA) can incur additional charges due to the nature of the product. All LISAs which are transferred to a non-LISA product or if you withdraw incur a charge of 25% before you're 60 or over. The Cambridge doesn't currently offer LISAs. 

How long does an ISA transfer take?

ISA transfers in can take anywhere between 7 and 30 days, depending on the type of ISA.

At The Cambridge:

• Cash ISA transfers: Usually take up to 15 working days
• Stocks and Shares ISA transfers: Usually take up to 30 calendar days

It’s also worth noting that most financial providers will give you a cooling off period, to decide if the account you’ve chosen is right for you.

At The Cambridge, all new accounts come with a 14-day cooling-off period. For ISA transfers, this period starts when we confirm we've received your transfer instruction. During this time, you can cancel the transfer without penalty.

If you transfer your ISA to us and then decide to cancel within this period, you'll need to tell us what you'd like to do with any funds we've received. You can either reinvest them in another product with us, close the ISA, which will count as a withdrawal but won't count towards your annual ISA allowance or transfer the ISA to another ISA provider.

Common questions about ISA transfers

For anyone who hasn’t completed an ISA transfer before, the process can seem lengthy and confusing, often raising a number of questions about how it works.

One of the most common questions about ISA transfers is whether they affect your annual tax‑free allowance. Good news is: ISA transfers usually don’t affect your tax‑free allowance. Transfers from previous tax years won’t use any of your current tax year £20,000 allowance. Whilst any current‑year ISA savings you transfer will count towards it, allowing you to top up to the annual limit.

Ready to transfer your ISA?

If you’re ready to transfer your cash ISA, you’ll need to start by completing the relevant transfer request form.

Different products require different forms. Depending on your choice of ISA you will need either a ISA Transfer Request Form or a Stocks and Shares ISA Transfer Request Form – please download and fill out one of these forms.

The instructions are clear and simple to follow, but if you need help filling them in, why not visit one of our branches where a member of our team will be happy to help or contact us on 0345 601 3344 or thecambridge@cambridgebs.co.uk.