How to transfer an ISA

The golden rule: never withdraw money to move it between ISAs. If you take cash out, it loses its tax-free status and counts against this year's allowance to put back. Instead, use the official ISA transfer process, where the new provider moves the money for you.

Step by step

• 1. Pick your new provider and check it accepts transfers in (most do).
• 2. Open the new ISA and complete its ISA transfer form, not a withdrawal.
• 3. The new provider contacts your old one and arranges the transfer directly.
• 4. Choose how much to move: you can usually transfer all or part of previous years' money; current-year money must be moved in full.
• 5. Wait for completion: cash ISA transfers should take up to 15 working days; stocks & shares and other types can take longer.

Before you transfer, check

• Exit or transfer-out fees from your current provider.
• Loss of any fixed-rate bonus or interest if you leave early.
• Whether you'll be out of the market (for investment ISAs) during the transfer.
• For a peer-to-peer ISA, how the provider handles transfers in and any delay in deploying your money into loans.

Transferring does not use up your annual allowance. Only new contributions do.