Other Candid sites

Candid Financial Advice
Financial advice for a fraction of the usual cost.

Compare Fund Platforms
The UK's only fund platform comparison site for private investors.

Calculator over 80 Calculators!

Covering almost all your money needs - use them.

Gift Aid

Calculator Find out how much your charitable contributions are worth and the tax higher rate taxpayers can reclaim.

Random Jargon

Offer Price

The buying price of an investment.

Ask Justin

Ask Justin

| Printable version | A A A |

Cash ISA transfer?

Saving | Cash ISAs Helpful? 3

Asked by serendipity, submitted 23 March 2010.

Open Quote 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?End Quote

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.

If you found this answer helpful, please add your vote by clicking here.

Readers' Comments (0) - To post a comment please register or login .