If an investor is considering transferring an ISA, it is important to understand that an ISA can be transferred from one provider to a different provider at anytime.
The rules regarding transfers are relatively flexible:
- A cash ISA or a stocks & shares ISA can be transferred to another provider
- A stocks & shares ISA can be transferred to a cash ISA and vice-versa
- All or a part of previous years ISA savings can be transferred but any ISA money that has been invested in the current financial year must be transferred in its entirety.
However it is important to understand if current ISA providers have any restrictions on transfers as well as exit charges.
Cash ISA transfers should take approximately 15 working days, while stocks & shares ISA transfers can take longer at up to 30 working days.
To switch ISA providers, individuals will have to complete an ISA transfer form. The ISA transfer form is important to complete. This is because if the money is withdrawn from the ISA then an individual will not be able to reinvest the respective amount withdrawn again.