My Dad’s response to the chancellor’s cuts to capital gains and dividend allowances was: “It’s a relief that everything your Mum and I have is in pensions and Isas.” After a lifetime of diligent saving and investing, you may think the same. But will our tax-advantaged savings regime escape future austerity measures?

Pensions have been like a long game of football in which governments constantly move the goalposts. I expect proposals for a flat rate of upfront tax relief on contributions to be the next move, as it would not only raise revenue, but be fairer to those on low incomes, and has been mooted for a long time.

But surely Isas are sacred cows? Isas are fantastic, enabling investors to receive tax-free dividends and capital growth. This will be more valuable from April 2023, when the dividend and capital gains tax-free allowances are cut in half.

There are already 27mn adult Isas, with 12mn people contributing to them. Among these savers are more than 2,000 Isa millionaires, who can now generate a tax-free income of £40,000 through dividends and are not obliged to declare it on their tax returns. Investors in UK companies can expect to receive an additional £5.7bn of dividends this year because of the pound’s slide against the US dollar.

That looks like a lot of “broad shoulders” that could be attacked in the next austerity move on our savings. And there is a growing case for reform of the Isa regime.

Launched in April 1999, Isas remain popular partly because investments that were originally shut out are now admissible, such as shares traded on Aim, London’s market for less mature companies (admitted in 2013), and peer-to-peer lending (admitted in 2016). 

There’s still room for improvement. Unlike taxable trading accounts and self-invested personal pensions, Isa investors can’t hold currency other than sterling. This adds costs for Isa investors trading in international markets, who have to pay foreign exchange fees — often high — for every transaction.

But not all previous “improvements” have caught on. Flexible Isas were introduced in 2016, to allow money to be moved in and out without this counting towards your annual Isa allowance, as long as the money is replaced within the same tax year. But while most of the big banks (but not all) have made their cash Isas flexible, change among the big broking platforms has been lacklustre.

Various governments have also stretched the Isa brand too far. Investors prefer the original versions. Two-thirds of accounts are cash Isas, with the bulk of the rest in stocks and shares. But other fanciful flavours such as Lifetime Isas, Help to Buy Isas and Innovative Finance Isas all have their own rules, allowances and penalties, and often overlapping features.

Understandably, people get confused about which Isa is best for their needs and the regime is crying out for simplification. But a review would provide opportunity for the benefits to be watered down.

Inflation has already undermined the annual Isa allowance, stuck at £20,000 since April 2017. Perhaps we shouldn’t read too much into this. The annual maximum contribution was £7,000 for the first nine years. Had it risen with inflation since the start, Hargreaves Lansdown estimates it would be just over £12,000. By that comparison, £20,000 feels generous.

Plus, only 15 per cent of subscribers save at the maximum, rising to 39 per cent of those with income of £100,000 to £149,999, and 60 per cent of those with income of £150,000 or more.

A more palatable option for a future Isa grab would be an upper limit on the savings one can make over a lifetime . . . The possibility is a reason to maximise your Isa holdings while you can

So the Isa allowance still largely serves richer cohorts, who are the ones the government needs to pay more capital gains and dividend tax.

I imagine the Isa tax advantage is safer than 40 per cent upfront tax relief on pensions for higher-rate taxpayers. Making the latter 30 per cent for all would be a bigger revenue raiser. But there’s little incentive to increase the Isa annual allowance, which could easily see inflation eroding its value further.

A more palatable option for a future Isa grab would be an upper limit on the Isa savings one can make over a lifetime. It would be hard to police as Isas don’t appear on tax returns and the regime is so complex. But just as when the pensions lifetime allowance was introduced in 2006, I would expect funds accumulated in excess of the lifetime allowance to be protected at the time of introduction.

The possibility is a reason to maximise your Isa holdings while you can. On that basis, the call by Martin Lewis, founder of the MoneySavingExpert consumer advice site, for millions to ditch cash Isas in favour of higher paying savings accounts — unless they pay tax or are close to paying tax on savings interest — may be short-sighted.

Cash Isas may look more attractive in future and you have the option to convert them to stocks and shares Isas too. I’d consider transferring surplus savings into stocks and shares Isas.

If you’re not in a position to make new Isa investments, consider transferring any investments held outside an Isa in taxable accounts. You can do this by yourself, but it might be time consuming and a bit fiddly. Plus, if you have lots of holdings, you could incur high trading charges.

“Bed and Isa” is an easy way to sell an investment and immediately repurchase it in an Isa to shelter it from dividend and capital gains tax. The sale of the investment outside the Isa will potentially create a capital gains tax liability so people often sell investments that keep their gain below the current £12,300 tax-free allowance.

Some brokers offer Bed and Isa over the phone. And some broking platforms offer online Bed and Isa services to help streamline the process, reducing both time spent out of the market and the charges involved.

Bed and Isa is counted as one transaction, so you only pay one dealing charge. AJ Bell and Interactive Investor both offer it (with £5.99 and £9.95 dealing charges on shares respectively). Hargreaves Lansdown plans to launch one at £5.95 before the end of the tax year.

It’s worth keeping an eye on platforms’ Isa deadlines — Bed and Isa deadlines tend to be much earlier than April 5. So preferably do this all well in advance.

In fact, why not put it on your Christmas admin to-do list? It could be the best festive present ever for your family.

Moira O’Neill is a freelance money and investment writer. Twitter: @MoiraONeill, Instagram @MoiraOnMoney, email: moira.o’neill@ft.com

This article has been amended to clarify Martin Lewis’s views on cash Isas

Cash ISAs are savings accounts that people never have to pay tax on.

Since 2016 the personal savings allowance means relatively few savers actually pay tax on interest, as all basic 20 percent rate taxpayers can earn up to £1,000 in tax-free interest each year in savings (higher 40 percent taxpayers £500 in tax-free interest each year.

Fewer than one in 20 people get close to that; for everyone else there's no practical cash ISA benefit, it explains on moneysavingexpert.com.

Instead, the interest rate is what counts, and cash ISAs usually pay less than normal savings.

If you’re thinking about investing, using a stocks and shares ISA may be a good place to start.

Opting for an investment ISA gives your money a great chance of growing, particularly compared to cash ISAs where the returns are unlikely to beat inflation.

Below we round up the top stocks and shares ISAs. For our comparison, we have focused on the cheapest ISAs and the companies with the best customer service.

We cover:

Related content: a simple guide to stocks and shares ISAs

This article contains affiliate links that can earn us revenue*

Top five ready-made stocks and shares ISAs

Our ratings are compiled by Fairer Finance. The independent research agency constantly monitors the fees and charges of every ISA provider, to help you choose the best for your needs.

We can’t ensure that your investments will shoot the lights out, but we can help you find a platform that doesn’t charge too much and has happy customers.

The star ratings show which products have the lowest fees overall. To calculate them, we look at all the ongoing annual costs of having £50,000 in a stocks and shares ISA.

To be awarded the top score of five stars, the cost must be below the sector average, plus there must be no sneaky one-off fees such as for opening the account or doing an ISA transfer to a competitor.

We also award companies that have a big enough customer demo a separate customer experience rating. This is based on transparency, complaints and client feedback. Our ratings are focused on cost and customer experience.

If you are fairly new to investing or are not confident at making your own investment decisions, go for a ready-made portfolio. This is where the platform will offer you a range of investments based on your attitude to risk.

Below, we list our best stocks and shares ISA choices.

Top five self-invested stocks and shares ISAs

If you want to take the DIY approach and build your own portfolio, you’ll need a self-invested stocks and shares ISA.

Here we list our top five:

Stocks and shares ISA FAQs

What is a stocks and shares ISA?

Investing in a stocks and shares ISA is a tax efficient way to save and grow your money.

If you open a stocks and shares ISA, any profits and dividends are tax free. There is a limit of £20,000 you can invest each tax year in your ISA.

Whether you want to invest a lump sum or invest on a regular basis, here’s everything you need to know about investing in stocks and shares ISAs.

What is the best performing stocks and shares ISA?

The performance of your stocks and shares ISA will depend on what you choose to invest in.

As each investor is different and will select different investments (particularly if they are a DIY investor) this makes it difficult to compare the performance.

Even ready-made portfolios can be difficult to compare in terms of performance because investment platforms have a selection of risk levels investors can choose from.

However, the fees can make a huge difference to the performance because the costs will erode your returns.

How to pick the right stocks and shares ISA

If you have decided you want to open a stocks and shares ISA, you should pick an investment platform.

A platform is a bit like a supermarket where you can choose what sort of ISA you want.

Nutmeg* is one of the best platforms for beginners but there are plenty to choose from. Find out more: What is a robo-adviser?

Under 40? You could open a stocks and shares Lifetime ISA where you get a 25% government bonus on top of investment returns. We outline the top lifetimes ISAs here.

If you want to invest for your child, you could consider one of these top junior ISAs.

Should I opt for a DIY or ready-made portfolio?

If you are fairly new to investing or are not confident at making your own investment decisions, go for a ready-made portfolio.

This is where the platform will offer you a range of investments based on your attitude to risk.

Charges for ready-made portfolios tend to be relatively straightforward, with most charging a platform fee plus a fund management flat fee.

If you want to take the DIY approach and build your own portfolio, you’ll need a self-invested stocks and shares ISA.

Most of these will let you hold shares in a wide range of stocks listed on the FTSE 100, Dow Jones and Nikkei 225.

You should also be able to invest in funds and investment trusts, though you’ll need to watch out for the charges that can be attached to these accounts.

Remember: Always choose an financial services provider that is authorised and regulated by the Financial Conduct Authority.

If you need a helping hand setting up the ISA, choosing the investments and deciding how much to pay in, consider using a financial adviser.

What are the fees on an ISA?

ISAs don’t come for free so you need to check the fees carefully or you will be losing money needlessly. Here are four of the most common types of ISAs charges to watch out for:

1. Platform fee

• Almost all platforms will charge investors a monthly fee. This will usually be a percentage of the money you hold on the site. For example Hargreaves Lansdown charge 0.45% capped at £45 per year while Interactive Investor’s stocks and shares ISA costs £9.99 a month
• Confusingly, different platforms have different names for these charges, such as service fees or custody charges.
• Some charge a flat fee while others charge a percentage of the funds.
• Most platforms charge tiered fees, meaning charges are lower for people with larger sums of money. 

2. Dealing charges

• If you’re trading stocks and shares, most platforms will charge you for doing so.
• Platforms such as Freetrade and Trading212 will let you buy or sell a wide range of stocks for free.
• But most platforms will charge a fixed fee per trade, depending on your monthly trades.
• Some platforms charge as little as £4.95 a trade, while others are as much as £15.

3. Transfer fees

• While most companies won’t charge you for transferring your investments to them, others will charge you when you try to leave.
• There are costs involved in transferring your investments to another platform, but some companies charge a lot for this, while others don’t charge anything at all.
• When you’re opening a new account, you’re rarely thinking about leaving. But it’s important to check these charges so that you don’t get stung if you ever decide to move on.
• The most expensive platforms will charge you per holding – as much as £25 for each stock.
• So if you’ve got a diverse portfolio with different holdings, you could pay hundreds of pounds in switching charges.

4. Trading over the phone

• If you like to trade over the phone, be sure to check the charges for this service before signing up.
• Some firms charge as much as £50 for phone trades, while others include it for no extra cost.

*All products, brands or properties mentioned in this article are selected by our writers and editors based on first-hand experience or customer feedback, and are of a standard that we believe our readers expect. This article contains links from which we can earn revenue. This revenue helps us to support the content of this website and to continue to invest in our award-winning journalism. For more, see How we make our money and Editorial promise.

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To apply, please review the instructor qualifications and email your resume, three references, and the courses you'd like to teach to instructorrecruitment@isa.org.

Instructor Qualifications

• Ten years of active, related industry experience in the course subject matter
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With interest rates rising and corporate profits struggling, share prices have been coming down. So with my Stocks and Shares ISA still worth more than I put in, should I cash in while I’m ahead?

Higher interest rates make holding cash more attractive than it was a year ago. Today, I could open an account that would pay me 4.8% interest a year for three years.

Nonetheless, I don’t think that selling out of my Stocks and Shares ISA is a good idea. Here are three reasons why.

Selling and buying

I know that I want to own shares in profitable businesses for the long term. So if I cash in my holdings today, I’d be looking to buy my investments back in the future. 

One problem is that I won’t know when to buy them back again. Selling is the easy part — buying the shares back again is much harder.

I think that the stock market is likely to go lower in the near future, but I don’t know when that might change. While share prices have generally fallen this year, there have been some significant rallies.

That means that there’s a real danger of finding myself having to buy my investments back at higher prices if I sell out of my ISA today.

Investing

There’s a bigger reason that I’m not selling my stocks, though. That’s because selling now and trying to buy back in later just doesn’t fit with how I think about building my wealth.

As I see it, investing isn’t about buying shares at one price and quickly trying to sell them again at a higher price. That’s trading, rather than investing.

I don’t have any problem with trading. But I prefer to just get on with the business of investing for myself. 

To my mind, that involves making money by owning shares in businesses and benefiting from the money they make. And that means keeping the shares for a long time.

Rewards

My last reason for not cashing in my stocks is that I’ve seen the rewards that the stock market can offer patient investors. Berkshire Hathaway CEO Warren Buffett is a good illustration of this.

One of my favourite Buffett quotes says that the stock market is a device for transferring money from the impatient to the patient. If he’s right about that, then I know which side I want to be on.

As an example, Buffett has owned Coca-Cola shares since 1988. And the Berkshire CEO’s patience with the stock has been rewarded handsomely. The share price has increased by over 2,000% in the last 34 years.

For me, that’s a powerful reason not to sell my stocks. So I won’t be cashing in my Stocks and Shares ISA any time soon.

What are the best cash Isa accounts?

Inflation rose to 11.1% in October 2022, from 10.1% the month before, according to the latest figures from the Office for National Statistics (ONS).

Below, we've listed the accounts paying the most interest on cash across instant-access, notice and fixed-rate deals at the time of publishing.

What are the different types of cash Isa?

Find out more about the different types of Isa available and which might be suitable for your savings goals.

What are the best cash Isa deals in December 2022?

Rates are updated regularly; correct at 7 December 2022.

Instant-access cash Isa accounts (unlimited withdrawals)

Excluding accounts with limited withdrawals or other restrictions, the best instant-access rate in our tables is 2.55% AER. This rate is available from Earl Shilton Building Society.

The next-best rate is 2.5% AER, offered by Cynergy Bank, Principality Building Society and Scottish Building Society. The interest rate for the Principality Building Society account reduces to 2.1% after a year.

One-year fixed-rate cash Isas

If you're able to lock your savings away for a year, you could earn 3.81% AER with UBL UK.

The next-best rate is 3.78% AER, from Shawbrook Bank.

Two-year fixed-rate cash Isas

The highest rate for a two-year Isa is 4.1% AER, from Charter Savings Bank.

The next-best rate is 4% AER/EPR, from Furness Building Society, Gatehouse Bank, Hodge Bank, Paragon Bank and TSB.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

Three-year fixed-rate cash Isas

The highest rate for a three-year term is 4.25% AER, from UBL UK.

The next-best rate is 4.2% AER/EPR, from Gatehouse Bank, Hodge Bank and TSB.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

Four-year fixed-rate cash Isas

Gatehouse Bank offers the highest rate of 4.2% EPR.

The next-best rate is 4% AER, from United Trust Bank.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

Five-year fixed-rate cash Isas

The current best five-year rate is 4.25% AER, from Hinckley & Rugby Building Society.

The next-base rate is 4.2% EPR, from Gatehouse Bank.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

What are combined cash Isa accounts?

According to current cash Isa rules, you're only allowed to pay into one cash Isa account in each tax year. You can open a new account and transfer your current year's deposit, but you have to transfer over the whole thing.

If you have accounts with deposits from previous years, you can transfer all or part of those to a new account, just as long as no 'new' money is paid into more than one account.

However, to get around this rule, some banks and building societies have started to offer 'combined Isas' or 'portfolio Isas', where you can open multiple cash Isa accounts in the same year under the same 'wrapper'.

This is helpful if you really want to split up your cash - for instance, you may want to save some in a fixed-rate account, while keeping some in an instant-access account.

What are the alternatives to cash Isas?

Savers can deposit up to £20,000 tax-free in an Isa during the 2022-23 tax year.

This money can be placed in a cash Isa, a stocks and shares Isa, an innovative finance Isa, or a mixture of all three.

Outside of your annual Isa allowance, you might want to consider placing additional funds in a traditional savings account or interest-paying current accounts.

Who are the best and worst cash Isa providers?

We know that customer service is an important factor for many people when choosing a savings account. But how do you find a bank or building society that combines great rates with top-notch customer service?

Which? is here to help. We've asked thousands of savers to rate their bank or building society, enabling us to create unique customer scores for all the major providers.

We've also analysed thousands of savings products and given each provider an overall product score, highlighting which companies offer consistently competitive rates. The full results from our 2022 analysis are as follows:

Best and worst Isa providers

Which? Recommended Providers for savings and Isas, 2022-23

Each year, we name the very best savings providers as 'Which? Recommended Providers' (WRPs). To win this award, the bank or building society must:

• achieve a customer score of 70% or above;
• achieve an above-average product score of 68% or more;
• be fully covered by the UK Financial Services Compensation Scheme (FSCS); and
• offer products which are available nationally and are not tied to the purchase of another product with the same provider.

This year, our WRPs are:

Zopa

Zopa achieved a customer score of 85%, with customers giving it high ratings for its customer service, application process, regular communications, and transparency of charges and penalties. Its online banking service also proved popular.

Among the savings accounts on offer, Zopa's unrestricted instant-access Smart Saver account pays 2.4% AER, rising to 2.8% if you choose a 'Boosted Pot' product that requires 95 days' notice on withdrawals.

Marcus by Goldman Sachs

Marcus by Goldman Sachs received a 82% customer score. Savers gave it top marks for its application process, clarity of statement and online banking service. The provider's transparency of fees and charges was also rated highly.

Marcus currently offers an instant-access savings account and cash Isa that both pay a competitive variable rate of 2.25% AER.

Skipton Building Society

Skipton Building Society achieved a customer score of 82%. It was highly rated by savers for its application process, clarity of statement and online banking service, as well as transparency of fees and charges.

Skipton Building Society currently offers an instant-access savings account of 2.36% AER and a cash Isa which pays 2.25% AER.

About Which?'s savings account research

Scores and star ratings are based on a survey of 4,517 UK savings account holders in August to September 2022.

Which? Customer Score

This is Which?'s rating for customer satisfaction, based on feedback from real customers. The score is calculated based on customers' overall satisfaction with the brand, and how likely they are to recommend it to others.

Product score

Our experts analysed hundreds of savings accounts covering a range of different account types, including instant access, one-year fixed and five-year fixed accounts.

Accounts were assessed on key criteria, such as opening restrictions, conditions to access and minimum investment requirements, in order to calculate a product rating score.

How Which? Recommended Providers are selected

To be eligible as a Which? recommended provider, a provider must achieve an average or above average score for its savings account.

This ensures that the providers we endorse offer consistently good rates along with excellent customer service.

Rates correct at time of publishing. Last updated 7 December 2022.

Some cash ISA providers offer a flexible facility that allows savers to withdraw and replace money from their cash ISA without it affecting the annual allowance. This is on the condition that the cash ISA is topped up in the same tax year the withdrawal was made.

For example if a saver paid £10,000 into a cash ISA this year, this would mean another £10,000 could be paid in before 6 April. However, if £5,000 was withdrawn, a flexible ISA would allow a further £15,000 to be paid in this tax year – the £5,000 previously taken out, plus the remaining allowance of £10,000.

In comparison, if the money was withdrawn from a non-flexible ISA and then replaced it, the money put back in would count against the annual ISA allowance for that tax year. So in the above example, only £10,000 could be paid in.

Not all cash ISAs are flexible, so check carefully.

Seccl, the Octopus-owned custodian and platform technology provider, has powered fintech pioneer GoHenry, with an API-powered Junior Stocks and Shares ISA.

Why should I transfer my cash Isa?

Most people will want to switch their cash Isa to a new provider in order to get a better rate.

There are no limits on the number of transfers you can make. However, you can only make new contributions into one cash Isa and one stocks and shares Isa each tax year.

Unlike transferring money held in a savings account, there are certain steps you need to take when transferring Isa savings. Done incorrectly, and your savings could lose their tax-free status and you could end up facing a tax bill.

In this guide, we explain how to move any kind of Isa savings.

Video: how to transfer your cash Isa

Watch our short video below to find out how to transfer your cash Isa to another provider.

How do I transfer a cash Isa to a cash Isa?

Step 1: Find the best rate cash Isa that allows transfers in

With dozens of accounts to choose from, it's important to research the best one for you before rushing in.

One basic way of comparing is by best rate. We've outlined the top-rate accounts that accept Isa transfers further down the page.

Step 2: Watch out for penalties

All cash Isa providers must let you remove your money if you wish to, but some may issue a penalty if you do - usually in the form of a reduction in interest.

This is most common with fixed-rate Isas that haven't yet matured - i.e. come to the end of their fixed term.

If your current Isa provider charges you for transferring funds, weigh up whether it's worth paying the penalty in order to secure an improved interest rate.

Step 3: Don't do it yourself - get your new provider to arrange the transfer

It's essential that you arrange your transfer through your new provider.

If you simply withdraw the money yourself and seek to reinvest it, this will be subjected to the rules surrounding new deposits. Your savings could lose their tax-free status as a result.

Your new provider will ask you to fill in an Isa transfer form, so you'll need the basic details of your old account to hand. Some providers will also allow you to set up Isa transfers online or over the phone.

Top-rate cash Isas that allow transfers

Not all Isa accounts accept transfers, but we've found the top-rate accounts for each fixed term, and offering instant access. Rates are updated monthly; correct as of 1 December 2022.

Instant-access cash Isa accounts (unlimited withdrawals)

Excluding accounts with limited withdrawals or other restrictions, the best instant-access rate in our tables is 2.5% AER. This rate is available from Cynergy Bank, Principality Building Society and Scottish Building Society. The interest rate for the Principality Building Society account reduces to 2.1% after a year.

The next-best rate is 2.43% AER, offered by Kent Reliance.

One-year fixed-rate cash Isa accounts

If you're able to lock your savings away for a year, you could earn 3.81% AER with UBL UK.

The next-best rate is 3.78% AER, from Shawbrook Bank.

Two-year fixed-rate cash Isa accounts

The highest rate for a two-year Isa is 4% AER/EPR, from Aldermore, Family Building Society, Furness Building Society, Gatehouse Bank, Hodge Bank, Paragon Bank, Kent Reliance, Paragon Bank and TSB.

The next-best rate is 3.95% AER, from Monmouthshire Building Society and Shawbrook Bank.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

Three-year fixed-rate cash Isa accounts

The highest rate for a three-year term is 4.25% AER, from UBL UK.

The next-best rate is 4.2% AER/EPR, from Gatehouse Bank, Hodge Bank and TSB.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

Four-year fixed-rate cash Isa accounts

Gatehouse Bank offers the highest rate of 4.2% EPR.

The next-best rate is 4% AER, from United Trust Bank.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

Five-year fixed-rate cash Isa accounts

The current best five-year rate is 4.31% AER, from Furness Building Society.

The next-base rate is 4.2% EPR, from Gatehouse Bank.

The account from Gatehouse Bank is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).

Please note that minimum and maximum deposit amounts vary, even across products with the same rate, so make sure you consider the full details before you opt for a new account.

How long does the Isa transfer take?

This depends on the type of Isa you have, and the kind of Isa you're transferring it to:

Cash to cash Isa

This should take no longer than 15 working days. When you open up your new cash Isa, you'll need to tell the provider that you want to transfer from another cash Isa, and they'll arrange the transfer.

If the transfer takes longer than 15 working days, contact your new provider to complain. Isa providers are obliged to begin paying interest within 15 days of receiving a transfer request, regardless of whether the transfer is completed or not.

Cash to stocks and shares Isa

Transferring from a cash Isa to a stocks and shares Isa can take longer - guidance from HMRC states that it could take up to 30 days. You'll need to fill out an Isa transfer form with your intended stocks and shares Isa provider, who will arrange the transfer.

Stocks and shares to cash Isa

Transferring from a stocks and shares to a cash Isa will depend on what kind of investments you own. If you have funds, such as unit trusts, it takes around five days to cash in your investments; shares take around three days.

Your cash Isa provider should deliver you a form in which you list the investments you want to sell and arrange the transfer.

Stocks and shares to stocks and shares Isa

Transferring from one stocks and shares Isa provider to another can take as long as three months, depending on how you do it.

Remember, there's no limit on the number of transfers you can make, so continue keeping an eye out for the best rates.

Can I move my old Isas?

Yes. You can move all or part of previous years' Isa savings to any other Isa accepting transfers. This will not affect your Isa allowance for the current tax year.

While you're only allowed to hold one 'active' cash Isa per tax year - that is, an account into which new Isa money is being paid - you can hold multiple 'inactive' Isas from previous tax years.

Some people like to have all their money in one place, and so choose to transfer their old Isas into a single new account each year. However, there is no rule that says you must do so.

If you choose to roll up all your Isa savings into one account, be careful that this doesn't push the total amount you hold in savings with a single financial institution above £85,000 - the maximum protected under the Financial Services Compensation Scheme (FSCS).

Can I transfer my Isa if I've already paid into it this year?

If you want to transfer money already paid into an Isa in this tax year, you must transfer all of it.

For old Isas, you can choose to transfer all, or part, of your savings.

If you wish to (and provided you have not paid into a fixed-rate cash Isa), you can transfer all of your savings - including the money you have put into this year's cash Isa - to a new provider. However, be sure to check whether you'd be better off by keeping your cash separate.

Isas that allow transfers may pay lower interest rates than those that don't, so it can make sense to hold two separate Isas each year: one for older savings which you can no longer pay into, and one for the current year's Isa allowance.

How do I transfer a cash Isa to a stocks and shares Isa?

There's no limit on the amount of money you can transfer from a cash Isa to a stocks and shares Isa.

However, this option should only be considered if you're happy to accept the possibility of losing money should your investments drop in value.

Step 1: Choose a stocks and shares Isa provider

Stocks and shares Isas are offered by many investment platforms (also known as 'fund supermarkets'), as well as banks and building societies.

In order to select the best provider, you should consider the range of investments offered as well as the fees charged.

We've reviewed 15 platforms, providing unique customer satisfaction scores and star ratings for six different elements of their services.

Step 2: Fill out a stocks and shares Isa transfer form

Never withdraw money from your cash Isa yourself and then seek to reinvest it with your stocks and shares Isa provider. This type of transaction will be subject to the limits associated with new deposits.

Instead, you'll need to fill out a transfer form with your new provider who will ask you for instructions on how to invest your funds.

Step 3: Wait for your stocks and shares provider to get in touch

Your stocks and shares Isa provider will contact your cash Isa provider to complete the necessary transactions. The process should take no longer than 30 days.

During this process, your funds will keep on earning interest in your cash Isa. Your stocks and shares Isa provider should get in touch to let you know when the transfer has been completed.

There are no limits on the number of transfers you can make per tax year, but it's likely you'll have to pay ongoing charges to your stocks and shares Isa provider and for the specific investments you make, so it's a good idea to do your research before transferring any money.

These fees vary, depending on what you invest in, but aren't usually any higher than what you'd pay if you invested in stocks and shares outside an Isa.

How do I transfer from stocks and shares to a cash Isa?

Step 1: Choose your new cash Isa provider

Make sure the account works for your circumstances, and that any restrictions will still enable you to use the account as you want to.

Step 2: Fill out an Isa transfer form from the cash Isa provider

You'll need to state how much you want to transfer, and which investments you want to sell.

The transfer times could vary depending on the types of investments you are selling, for example, unit trusts take around five days to cash in, shares around three.

Step 3: Wait for your investments to be sold

After your investments have been sold, the transfer of your funds from your stocks and shares Isa should take no longer than 30 days.

Rates correct at time of publishing. Last updated 18 October 2022.