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How to transfer an ISA without losing your tax-free allowance

Moving your Cash ISA to a better rate is simpler than it looks. Here is how ISA transfers work, how long they take, and how to keep every penny of your allowance.

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To transfer an ISA, ask your new provider to arrange it for you. The money moves directly between providers, so it keeps its tax-free status and does not use up this year’s allowance. Never withdraw the money yourself to move it, as that ends its ISA protection. Cash ISA transfers usually complete within 15 working days. 

At a glance

  • Use the transfer process and your tax-free status is protected.
  • Transferring money you have already paid into an ISA does not use up this year's allowance.
  • Never withdraw and re-deposit. Always transfer.

Why move your ISA? 

Many ISAs open with a competitive rate and quietly drift onto a lower one. Moving to a better rate can make a real difference over time, yet a lot of savers stay put because switching feels like effort. Transferring is designed to be the easy, safe way to keep your money working, without giving up your tax-free allowance. 

How does an ISA transfer work? 

An ISA transfer moves your money from one ISA to another while keeping it tax free. You choose the new ISA and ask that provider to arrange the transfer. They request the money from your current provider and move it directly, so it never leaves the ISA system and you never handle the cash.

How long does an ISA transfer take? 

An ISA transfer moves your money from one ISA to another while keeping it tax free. You choose the new ISA and complete that provider's transfer form, which tells them to arrange it for you. They then request the money from your current provider and move it directly, so it never leaves the ISA system and you never handle the cash.

Innovative Finance ISAs can take longer, because the investments they hold may be harder to sell quickly, so it is worth asking your current provider how long a transfer is likely to take before you start.

Transfer type Expected time
Cash ISA to Cash ISA  Within 15 working days  
Involving a Stocks & Shares ISA  Up to 30 calendar days
Involving an Innovative Finance ISA Can take longer than 30 days 

Transfer or withdraw: what is the difference?

If you withdraw money from an ISA and pay it into another yourself, it loses its tax-free status and counts as a new contribution against this year’s allowance. The transfer process avoids both. This is the single most important thing to get right. 

  Transfer Withdraw & re-deposit
Tax-free status Kept Lost
Uses this year’s allowance? No Yes
Who moves the money Your new provider  You

Can you transfer part of an ISA, or an old one?

Yes. You can transfer ISAs from previous tax years in full or in part, and bring several old ISAs together. Money paid in during the current tax year may need to move in full, depending on the ISA and provider, so it is worth checking before you start.

How Meteor makes moving your ISA easier

With Meteor Savings, a single login gives you access to savings products from a range of UK-authorised banks, across a General Savings account and a Cash ISA. When a fixed term ends or a better rate appears, you can move to a new product without opening a new account or repeating ID checks, and we handle ISA transfers for you and keep them tax free.

  • No platform fees, so you receive the advertised rate in full.
  • Hold more than one product in your Cash ISA, and bring in ISAs from previous years, all within your allowance.
  • Reserve a product when you apply and we will hold it for 15 days while your ISA transfer arrives.
  • Meteor Boosts: extra interest on selected products for platform customers (subject to eligibility and terms).
  • Eligible deposits are FSCS protected up to £120,000 per banking group. 

Some products are fixed for a set term, which means your money is locked away until the term ends, so it is worth choosing a mix that suits you. 

See our Cash ISA

Reserve your rate while your transfer completes

With Meteor Savings you can pre-order an ISA product when you apply, and we hold it for you for 15 days while your ISA transfer arrives. That means you can secure the product you want without your money sitting idle or missing out during the transfer window.

ISA transfers can take a little time, and rates can move while you wait. A pre-order lets you lock in your choice up front, so the product is ready and waiting when your transferred money lands. It is an unusual feature for an ISA, and one of the ways Meteor takes the friction out of moving your savings.

How to transfer your ISA, step by step

  1. Choose where your money should go.
  2. Open or select the new ISA and complete any ID checks.
  3. Complete an ISA transfer application form for the ISA(s) you want to transfer.
  4. The providers move the money directly, keeping its tax-free status.
  5. Check the money and any interest have arrived within the expected time. 

Key takeaways

  • Always use the transfer process to keep your money tax free.
  • Transferring old ISAs does not use up this year’s allowance.
  • Cash ISA transfers should take up to 15 working days.

Frequently asked questions

The questions savers ask us most about moving an ISA. Still not sure? Our UK-based team can talk it through with you.

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Sometimes, but a fixed-rate ISA may charge a penalty, usually a loss of interest, for moving before the term ends. Check the terms first. It is often worth waiting until maturity, when the money is free to move.

Your tax-free status is protected, and a well-run transfer keeps your interest on track. If a Cash ISA transfer takes longer than 15 working days, you can ask your provider to make good any interest you lost.

No. Transferring money from an existing ISA does not count as a new contribution, so it does not use your annual allowance, as long as you use the transfer process rather than withdrawing.

Yes, you can transfer between ISA types in either direction. Remember that a Stocks & Shares ISA carries investment risk, so its value can fall as well as rise. 

From 6 April 2027, moving money from a Stocks & Shares ISA into a Cash ISA may be restricted for under-65s under the new Cash ISA rules, so check the latest position before you transfer.

Eligible deposits with UK-authorised banks are protected by the FSCS up to £120,000 per person, per banking group. Spreading savings across banking groups can help keep more of your money protected.  

Important

  • The information provided here is for informational and educational purposes only and does not constitute financial advice. We highly recommend consulting with a financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

What the 2027 Cash ISA changes mean 

From 6 April 2027, savers under 65 can pay up to £12,000 of the £20,000 ISA allowance into Cash ISAs each year; savers aged 65 and over keep the full £20,000. Existing Cash ISA balances are protected, and the change does not stop you transferring ISAs you already hold.