How to find the best cash Isa Switching your cash Isa

Cash Isa small print

Make sure you understand and stick to the rules for Isa transfers - or your cash could lose its tax-free benefits

You could significantly improve the return you earn on your cash Isa savings by transferring them from low-paying accounts into Best Rate cash Isas.

However, before trying to move your money, you must understand the rules around cash Isa transfers and ensure you stick to them - or you may find your cash Isa savings lose their tax-free benefits.

First you've got to find a better account. The Which? savings and  Isa comparison tables let you search all available savings accounts and cash Isas from all available providers to choose the best savings rates based on quality of service as well as cost and benefits.

Go further: Which? savings and Isa comparison tables - compare the best deals on the market

Transferring cash to another Isa provider

In order for a transfer to be official, you must complete it by contacting your new provider and filling out a transfer form. Your new provider will then do all the work to ensure your savings are transferred correctly.   

If you withdraw the money yourself then seek to re-invest it, it will count as a new deposit. This means you'll only be able to re-invest the remains of your annual allowance and your savings could lose their tax-free status. 

Limits on active Isas

Active Isas are those which have had funds transferred in during the current tax year. You can transfer funds between Isa providers as often as you like, but bear in mind that you can only have two active Isas (one for cash and one for stocks and shares) open at a time.

This means, while you can transfer ALL your funds from an active Isa to a different provider, you can't split these funds between different providers. Funds from inactive Isas can be split between more than one provider if you so wish. 

Go further: Transferring a cash Isa - our guide covers everything you need to know about moving your funds

Switching between cash Isas and stocks and shares Isas

While there used to be rules prohibiting the transfer of funds from stocks and shares Isas to cash Isas, these have now been relaxed. You can transfer all of your cash Isa funds into a stocks and shares Isa and vice versa, provided you don't have more than two active Isas open at a time.

Go further: Transfer a cash Isa to a stocks and shares Isa - a step-by-step guide to this process

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