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I am Confused About Switching ISAs How Do I Do It

by Jim ONeil on May 17, 2011

in ISA's Individual Saving Accounts

Transferring an ISA is actually quite simple and can be handled with little drama or stress. Here are some tips on how to make this happen as quickly as possible and providing the most benefit to you.

There is really no need to transfer unless you find a better rate. Check your current rate with other rates available on the market. Depending upon how long ago the ISA was open, significantly higher rates may be available.

While ISAs had an interest rate of just above two percent that last few years, there are currently isa accounts paying over 4.5 percent.

When you finally find a new provider, before opening the account, make the provider aware that you will actually be transferring your account. They will provide you with the proper transfer papers. This paperwork must be supplied to your old provider so they do not close the account.

If they treat it as a closure, all tax benefits are forfeited.

In discussing the process with your new provider, find out if they actually offer the transfer service as part of their program. This will save you the time it takes in contacting your provider and alleviate any problems or misunderstandings that may result in the account mistakenly being treated as a closure.

After filling out the transfer paperwork, the provider should be able to handle everything flawlessly.

Steve B

If you move abroad (and thus are no longer UK Resident for Tax), I believe you are permitted to leave it invested in UK, but you no longer qualify to add anything to it.

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