Switching ISA providers?
Saturday, 02 February 2008 12:00
A reader from Glasgow wants to know if he can switch ISA providers and what charges there might be.
Jason Witcombe, director at Evolve Financial Planning part of our team of Independent Financial Advisers (IFAs) from unbiased.co.uk, offers a helping hand.
Hugh from Glasgow asks:
I have a mini cash ISA with MLC with about £14,000 in.
Can I transfer the whole amount to another provider? Will there be any charges?
Jason from Evolve Financial Planning replies:
First of all, you should be aware this will be a number of mini cash ISAs rather than just one year's worth.
It is unusual for there to be any exit charges when transferring mini ISAs but you should double check with MLC.
In terms of where to transfer this to, you should note many of the "best buy" cash ISAs will not accept transfers which is going to restrict your choice.
Depending on what your overall finances are like, come April 2008 you could consider transferring to a stocks and shares ISA.
This is because from 6th April 2008, the concept of "mini" and "maxi" ISAs will no longer exist. Mini cash ISAs, TESSA-only ISAs (ToISAs) and the cash component of a maxi ISA will automatically become cash ISAs.
In addition, mini stocks and shares ISAs and the stocks and shares part of a maxi ISA will automatically become stocks and shares ISAs.
It will then be possible to transfer money saved in cash ISAs to stocks and shares ISAs but not the other way round.
I hope this is of interest.
If you have a personal finance question for our team of Independent Financial Advisers (IFAs) from unbiased.co.uk, go to the myfinances.co.uk Ask the Expert section.
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