ISA transfer explained

There isn’t necessarily a “best time” to transfer an ISA. It depends on your individual circumstances and goals. However, here are some factors to consider if you’re thinking about transferring your ISA:

Interest rates

If you find an ISA offering with a better interest rate than the one you currently have, transferring may be beneficial. It could be a good idea to regularly compare rates to see if a switch makes sense.

Account features

Are you looking for more options, or a specific account feature such as flexibility to withdraw? Transferring ISAs may be a good option while keeping your tax-free benefits.

Changes to your goals

If your financial goals change, you might need a different type of ISA. A transfer allows you to switch to a more suitable option.

Please note: Some ISAs, such as our Fixed Rate Cash ISAs and Lifetime ISA have an interest penalty if you transfer money out before the fixed term ends.

Important to know: If you intend on transferring money out of a Lifetime ISA into another type of ISA before the age of 60, you will normally have to pay a 25% government withdrawal charge. This would mean you would get back less than you paid in.

While the exact time frame depends on the type of ISA, most ISA transfers typically take between one to four weeks to complete. Here’s a quick breakdown:

• Transfers into a Skipton Cash ISA from another Cash ISA usually take up to 7 business days.

• Transfers from Stocks and Shares ISAs, Innovative Finance ISAs and Lifetime ISAs take approximately 30 calendar days.

Here at Skipton Building Society, we work hard to ensure a smooth and efficient transfer process for your ISAs. We’ll keep you informed throughout – and answer any questions you may have.

If you’re considering transferring money from one type of ISA to another, the amount you can transfer depends on the ISA type:

Cash ISAs

The annual ISA allowance doesn’t apply to transfers for Cash ISAs. This means you can transfer the entirety of your existing Cash ISA balance from your current provider to your new one, if they’re offering a better deal.

Lifetime ISAs (LISAs)

Transfers into LISAs follow different rules. If you transfer the previous tax year’s savings into a LISA from a different type of ISA (for example a Cash ISA), it will count towards the annual £4,000 LISA allowance. But transfers from one LISA to another don’t count towards the annual £4,000 LISA limit.

You can transfer ISA savings from one ISA to another without affecting your ISA allowance, as long as the terms of both accounts allow it. Depending on the transfer, you may be able to transfer some or all of your account balance:

Transfers into a Skipton Cash ISA:

Transfers out of a Skipton fixed rate Cash ISA:

Transfers out of a Skipton variable rate Cash ISA:

For the majority of Cash ISAs, you won’t lose any interest that has been built-up when transferring an ISA.

However, here’s some things you should know:

Easy Access Cash ISA Transfers:

For most types of Cash ISA, your existing provider will typically pay you any interest earned up to the day the transfer takes place. You’ll then start earning the rate of interest on your new ISA from the day it transfers over.

Fixed Rate ISA Transfers:

Some Fixed Rate ISAs may charge an early exit penalty if you transfer or withdraw your savings before the fixed term ends. This penalty could eat into the interest you’ve earned, and you could get back less than you paid in. Always check the account terms and conditions of your Fixed Rate ISA before carrying out a transfer.