So, you’re thinking about moving some of your cash savings into the world of investing? And why not continue the tax benefits a Cash ISA brings you in the process, right?
Especially with the UK government considering reducing the annual allowance for Cash ISAs, it may be worth considering whether to take action sooner rather than later. Transferring all, or some, of your money into a Stocks and Shares ISA could be just the thing for this.
Please note, Wealthify does not offer advice, if you’re not sure whether investing is right for you, then please speak to a financial adviser.
Moving money from your Cash ISA to a Stocks and Shares ISA can be a simple process, all handled for you by the new provider. Here’s an introduction to the process, rules, benefits, and considerations to be mindful of.
- Can I transfer a Cash ISA to a Stocks and Shares ISA?
- Why transfer from a Cash ISA to a Stocks and Shares ISA?
- What are the rules for transferring a Cash ISA?
- How do I transfer my Cash ISA?
- Can I transfer back from a Stocks and Shares ISA to a Cash ISA?
- Transferring to a Wealthify Stocks and Shares ISA
Can I transfer a Cash ISA to a Stocks and Shares ISA?
Yes, it’s usually quite simple to transfer your Cash ISA to a Stocks and Shares ISA. You can instruct the ISA provider to do this for you, which means you can:
- Keep your remaining ISA allowance for the current tax year and existing tax-free benefits.
- Ensure the new provider can accept the transfer.
- Leave the new provider and have the existing provider handle things for you; no manual withdrawals or deposits should be needed.
Note: If you do choose to manually withdraw your money from a Cash ISA and deposit it in a new Stocks and Shares ISA, you would lose the tax-efficient benefits that the ISA provides.
If your total deposit into the new Stocks and Shares ISA is more than the £20,000 ISA allowance, you’ll need to wait until April 6th to deposit the rest of the money into an ISA (which is when the new £20,000 allowance starts for the next tax year). This is something to consider, and usually why people opt for the ISA providers to do the transfer for them.
Why transfer from a Cash ISA to a Stocks and Shares ISA?
Good question. Some of the key benefits of transferring include:
- The possibility of your money growing more over time, when compared to only saving cash.
- Investing as a strategy to beat inflation versus sticking to the savings interest rates.
- Money that’s for your long-term goals, compared to short-term savings.
- The tax efficiency a Stocks and Shares ISA could bring you, compared to investing outside of an ISA.
With investing, your capital is at risk, and you could get back less than you put in.
What are the rules for transferring a Cash ISA?
In April 2024, ISA rules changed. Previously, you had to take care to only open one new type of ISA in that tax year. But now, you can have multiple ISAs with different providers, or different types of ISA (although Lifetime ISAs and Junior ISAs are limited per person).
The key difference now is that you are individually responsible for not going over the ISA allowance — between all ISAs you hold. Lifetime ISAs are capped at £4,000 per year anyway, but you can still save or invest the remaining £16,000 allowance in Stocks and Shares ISAs, Innovative Finances ISAs, and Cash ISAs (although the latter may be subject to a £5,000 cap soon, too).
Junior ISAs are slightly different, as you’re managing the account for a child. They have their own separate ISA allowance of £9,000 per tax year. This is completely separate to your own £20,000 adult allowance.
Full vs Partial transfers
Depending on their policy, your new Stocks and Shares ISA provider might ask you to transfer everything you’ve saved in your Cash ISA during the current 2025/26 tax year.
However, it’s likely you’ll be able to transfer just a part of your Cash ISA’s value for the money you saved in previous tax years. Remember, the tax year runs from April 6th to April 5th each year.
This partial transfer could be a good stepping stone if you’re testing the waters with investing, but want to keep some money back in your Cash ISA.
Check with the provider
Before taking any action, ask the new provider whether they can accept the transfer (as not all of them can), plus any fees that may be involved. Then ask the current Cash ISA provider whether there are any restrictions or exit charges to consider.
Wealthify can accept Cash ISA transfers from other providers, and we don’t charge you for transferring in or out.
For more information about the rules of transferring an ISA, please visit our blog: ISA Transfer Rules Explained.
Key considerations and potential risks before transferring
Investing does have an element of risk:
If you’re getting ready to move from saving to investing, you probably have an understanding that there’s more risk attached to the latter. Market performance can go down as well as up, so most people only invest money they’re comfortable taking that risk with. Typically, you first need to make sure:
- Your essential outgoings are covered.
- You have an emergency fund saved.
- You’re comfortable leaving the money invested for a minimum of 5-10 years (ideally longer).
Time ‘out of the market’:
You may be itching to start investing right away, however, there will be a transitionary period while the transfer is happening. During this time, your money won’t be earning interest in the Cash ISA, nor invested in the Stocks and Shares ISA quite yet. This is something to consider during the transfer period.
You may also want to consider the pound cost averaging strategy for making further payments after your transfer; setting up a regular Direct Debit is a simple way to do this.
Your ISA allowance is spread across all the different types of ISA you hold:
Your annual £20,000 allowance is for all the ISAs you pay into in a tax year (it’s not £20,000 per ISA). It’s also your responsibility to keep an eye on not going over this amount, particularly if you’re using different providers.
Platform fees: The new ISA provider may charge a fee for managing your account and using their service. Wealthify’s Stocks and Shares ISA is 0.6% annually, charged monthly.
Transfer fees: Wealthify doesn’t charge customers for transferring in or out, but other providers might do. Additionally, your existing Cash ISA provider may charge an exit fee, so check your existing terms and conditions or reach out to their customer service team to confirm.
Investment fees: As you move from cash savings to investing your money, be mindful that there are usually charges when buying and selling shares.
With Wealthify, we aim to keep these low: usually 0.16% for our Original Investment Plan, and 0.7% for our Ethical Investment Plan. These fees are also part of the purchase and sale automatically, so it isn’t a separate bill you’ll receive.
How do I transfer my Cash ISA?
Researching your new provider would be the initial thing to do, looking at their fees, processes, and investment approach, to see how it lines up with you and your values.
Once you’ve decided on your new Stocks and Shares ISA, the provider will have their own exact steps. It’s likely they’ll guide you to use their transfer process (usually a form), which gives them permission to initiate the transfer from your current provider to the new one.
With Wealthify, it’s three simple steps:
- Visit Wealthify’s ISA transfer page to check if it’s right for you, then select the ’Transfer an ISA' button. Fill in the form, choose your investment style (from Cautious to Adventurous), how much you’d like to transfer, and tell us that it’s from an existing Cash ISA.
- Answer a few suitability questions in our quiz. This assesses your attitude to risk, with the results helping us understand if it’s the right product for you.
- We’ll initiate the transfer and speak to your current Cash ISA provider. There’s no need to manually withdraw and deposit the money with us; we’ll help you retain your ISA’s tax benefits by doing the transfer in the background.
Sit back and relax, we’ll take it from there. Our expert Investment Team will build your Investment Plan once your transfer is complete, ensuring we create a portfolio that’s aligned with your intentions, values, and goals.
You’ll have been given an option to select our Original or Ethical Investment Plan in the process, so you can rest assured the team will build with those intentions front of mind.
For more information, please read our blog on how to transfer an ISA.
How long does a transfer take?
Transferring cash between ISA providers is more straightforward, with the transfer usually completed in 15 working days. This timeframe applies whether you’re moving to another Cash ISA or a Stocks and Shares one.
Once the transfer process has started, the two providers contact each other and organise for your money to be moved over. If it does take longer than this 15-day period, you should reach out to the provider to find out what’s happening.
If you are unsatisfied with how the provider is handling it after that point, you can go to the Financial Ombudsman Service:
Financial Ombudsman Service
Telephone number if calling from a landline: 0800 023 4567
Telephone number if calling from a mobile: 0300 123 9123
Check out the Government’s call charges here.
Can I transfer back from a Stocks and Shares ISA to a Cash ISA?
Yes, some providers do allow transfers from a Stocks and Shares ISA back to a Cash ISA, either with your current provider or by switching to a new one.
If you decide to transfer from Wealthify to another provider in the future, you won’t be charged any exit fees once your money is held with us.
If the transfer process is still happening, you can reach out to our Customer Care Team to cancel the move. They may also ask you to contact your existing Cash ISA provider too, so they can pause things on their side while the cancellation is in progress.
Remember, investing is a long-term strategy for building your wealth.
So, don’t be alarmed if you see the markets rise and fall in the first instance — these are normal and expected movements within the world of investing. Our Customer Care Team can help you with any queries or concerns you may have about investing, too.
Transferring to a Wealthify Stocks and Shares ISA
Getting started with a transfer to Wealthify is simple.
We’re an award-winning investment platform with a team of in-house industry experts managing your investments.
Working to the investment style that’s right for you, our team will build your portfolio with your values and preferences in mind.
Check in to our handy app or website dashboard to monitor your money at any time — then sit back and take back your time, as we handle the heavy lifting for you.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
Wealthify does not offer advice, if you’re not sure whether investing is right for you, then please speak to a financial adviser.
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