How To Transfer Your ISA

If you want to switch your Cash ISA to one with a better rate, make sure you don't inadvertently close it.

Last night I mentioned to my husband that I had just sent off the forms to transfer my Mini Cash ISA to a bank with a better interest rate. Well, as the Bank of England base rate has recently gone up, so too have savings rates, so it made sense to shop around for a better deal.

Anyway, I'm not quite sure how we got around to it but I ended up challenging him to tell me everything he knew about ISAs. I've always been a bit peeved that he's never read my book (A Girl's Best Friend is Her Money), and have always assumed that anything I've ever said to him about personal finance stuff has gone in one ear and out the other.

Like many people, my husband has no real interest in the intricacies of money matters. Fortunately, he doesn't like borrowing money so he's rarely been in debt but he doesn't think too much about saving either. As long as we can pay the bills, he's happy - the rest is up to me. I don't mind really but it's always frustrated me that he doesn't get the slightest bit excited or agitated about Bank of England base rate changes or what the FTSE 100 is doing.

So, back to the point. I was surprised to find that he knew pretty much everything there is to know about ISAs - the tax savings; the difference between Minis and Maxis; the contribution levels for each; where the money can be invested and in what proportions, etc (you know all this, don't you!). And I was rather gratified to be told that everything he knew was down to what I had told him at the kitchen table over the years. Blimey!

The only question he couldn't answer was why I had approached the Bradford & Bingley to deal with the transfer when my Cash ISA money was with the Cheltenham & Gloucester.

Savers sometimes forget that if you close down an ISA and withdraw the cash, then all the tax benefits immediately disappear in a puff of smoke. You can transfer your ISA - whether your money is invested in cash or shares - to a different company whenever you like. But the vital thing is to get the new provider to sort out the transfer for you so that your money stays within the system.

I repeat! Money from an old ISA always needs to be transferred by your new provider. Never, under any circumstances, do you close down your ISA and try to transfer the money yourself.

My husband is never going to get around to reading my book but at least I know he listens to me. Hopefully, you're paying attention too!

Learn all about ISAs.