Cash ISA transfer?
|Saving | Cash ISAs
Asked by serendipity, submitted
23 March 2010.
I have a cash ISA with Barclays can I transfer it to Santander as the rate looks much better? Also, if I transfer it into a stocks and shares ISA can I move back to cash again one day?
Answered by Justin on 23 March 2010
Yes, you can transfer to another cash ISA. You simply need to complete an ISA transfer form with the new provider, in this case Santander. They will then organise transferring the money across from Barclays - the transfer must complete within 30 days and you may lose interest for several days during the process. Whatever you do don't withdraw the money yourself as you'll then lose that part of your cash ISA allowance forever.
The Santander rate, currently 3.5%, includes a 12 month bonus that guarantees the rate will be 3% above the Bank of England base rate, with a minimum of 3.5%. Be prepared to shop around and transfer again in a year when the bonus expires, as the rate will probably become far less attractive.
Transferring into a stocks & shares ISA is a one-way process, so you can't move back into cash at a later date. This rule makes no sense (it's logical that transfers back into cash ISAs should be allowed too), but probably stands because cash ISA tax benefits cost the Government more money than those on stocks & shares ISAs.
Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific
investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if
necessary, use a qualified professional adviser.
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