Transfer cash ISA to a stocks & shares ISA
Understand how an ISA transfer works and whether it's right for you
Transferring your cash ISA to a stocks and shares ISA could help you manage your finances more easily and may help you save more money in the long term.
It’s important you follow the transfer process correctly, so you keep your tax-free allowance. Below, we’ll guide you through how to transfer an ISA by explaining:
- the process itself, step-by-step
- the rules that apply to ISA transfers
- frequently asked questions about the process
How to transfer an ISA
Firstly, you must check your eligibility:
Do you have an existing cash ISA with another provider?
Are you a UK resident, aged 18 or over and have a National Insurance number?
If the answer is 'yes' to both questions, then you can complete our ISA transfer process online.
Once you’ve done that, we’ll contact your provider and make the transfer, while making sure your money doesn’t lose its tax-efficient ISA status.
ISA transfer rules
There are some important rules which you must follow when making an ISA transfer.
- If you close one ISA and open another your money will lose its tax-exempt status.
- This is because Lifetime ISA rules mean that you can only withdraw your money to buy your first home or after you turn 60.
- You can transfer money from another type of ISA to a Lifetime ISA up to the £4,000 per year limit. The £4,000 limit only applies to Lifetime ISAs.
- You don’t need to transfer all the money in your ISA at once.
- There’s no limit on the number of transfers you can make in one tax year.
- Check with your old provider first.
- You can switch between a cash and stocks and shares Junior ISA, but not to another type of ISA.
Ready to get started?
Open a stocks and shares ISA with just £20 a month or a £100 lump sum.
Once your stocks and shares ISA is open, you can begin the transfer process.
When is the best time to transfer an ISA?
You can make an ISA transfer at any time. But you might want to think about a few things first:
- Stocks and shares ISAs usually work best as mid to long-term investments, of at least five years, so it's important to think carefully about the right time to transfer. Their value will go up and down, and it's not a guarantee that you'll get back more than you invest.
- If you’re transferring into a cash ISA, you may want to choose a time when interest rates are higher.
- If you have a fixed-term cash ISA, you might want to wait until the fixed term has ended so you don’t have to pay any early-exit charges.
Transfer a stocks and shares ISA to a cash ISA
If you want to transfer your money from a stocks and shares ISA to a cash ISA, remember that:
- You can only transfer uninvested cash. So, you must sell your investments to the value of the amount you would like to transfer before you start to make the ISA transfer.
- While cash ISAs can provide certainty and safety, they may lose value in real terms if their interest rate is lower than inflation rate. If you're not sure which is right for you, our article on cash vs stocks and shares ISAs could help.
- Before deciding to transfer from a stocks and shares ISA you should consider costs such as fund exit fees or transfer-out fees, which might reduce the amount you end up with.
It's important to check with your ISA provider before making an ISA transfer, as they may have other conditions to follow as part of the transfer process.
Frequently asked questions
No, it doesn’t count as opening a new one. But you must follow the process correctly.
It takes up to 15 working days to transfer a cash ISA to another cash ISA and up to 30 calendar days to transfer other types of ISAs, including a stocks and shares ISA.
You can usually complete an ISA transfer form online through your new provider’s website or app. You can find our ISA transfer form by logging into your online account or the L&G app. For a paper copy, you may be able to download and print one yourself from your provider’s website or call them to send you one by post.
No, transferring an ISA doesn’t use up your ISA allowance. For example, you might have £40,000 saved in one ISA. You can transfer it all into another ISA without affecting your £20,000 annual allowance.
Related articles
Can I have more than one ISA?
Cash vs stocks and shares ISA – what's the difference?
