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Should you transfer your ISA?

We hope you enjoy this article from our archives. As investment, pension and tax rules change a lot over time, the information in this post may not be current, but we hope you still find it interesting.

Lisa Caplan

18 April 2018|2 min

Girl photographing butterflies

Thinking about transferring your ISA this year? You’re not alone. Our research shows that more than a quarter of ISA customers are looking to transfer to a new provider this year.

Independent research commissioned by Nutmeg found that over half (54%) of ISA customers don’t think they’re getting the best quality service and value from their current provider, and more than a quarter (27%) of all ISA customers are considering transferring to a new provider.

According to the research, over half (52%) of UK adults currently have an individual savings account (ISA). However, when asked if they thought they were getting the best quality service and value from their current ISA provider, less than half (46%) said they thought they were.

Motivated by the possibility of better value for money, a broader range of investments or improved customer service, 27% of ISA holders said they were considering transferring their existing ISA away from the provider they were with.

Of those who are considering transferring their ISA, the top reasons for doing so were:

  • better value for money (56%)
  • improved returns or interest rates (52%)
  • better choice of investments (18%)
  • better quality service than my current provider (13%).

The £20,000 ISA allowance is a generous tax break, so whether you are investing the full amount, putting away a little bit for a rainy day or topping up an existing ISA, it is important to ensure that you are with a provider that’s offering what is important for them.

Transferring an ISA can help consolidate savings and investments in one place; reduce costs; and if you’re looking for better returns over the longer term and are prepared to take some risk, then it might be worth considering switching from cash to stocks and shares. And what’s more, transferring an ISA could be easier than it might appear.

So, if you are looking for better value from money or a broader investment choice from a new ISA this tax year, it’s worth considering transferring existing ISAs too.

Risk warning:

As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. A stocks and shares ISA may not be right for everyone and tax rules may change in the future. If you are unsure if an ISA is the right choice for you, please seek independent financial advice.

Source:

Research conducted by Opinium Research on behalf of Nutmeg between 23rd and 27th February. The research was conducted among 2,002 online interviews with UK adults and is weighted to be nationally representative.

This article first appeared on The Mirror on 6th April 2018.