Did you know you could switch ISA and bag up to £1,000? Check this list of ISA providers paying cashback bonuses to switch.
It isn’t only bank accounts that offer switching bonuses, you can make up to £1,000 switching ISA.
As we countdown to the new tax year (on 6 April 2023), ISA providers are offering up to £1,000 if you switch to them as they try to attract new customers.
Here we reveal some of the hottest ISA switching bonuses and explain how to switch. Before switching, make sure you know the ins and outs of what an ISA is and its benefits.
IS it time to switch ISA?
The best cashback offers for switching ISA providers
Bestinvest | up to £1,000 cashback
New and existing customers can bag the £1,000 cashback bonus, but you must transfer your full account to a Bestinvest General Investment Account, ISA, Junior ISA or SIPP. This offer ends on 15 March. Also note you need to transfer from another investment provider, any transfers from a traditional bank account won’t count.
Minimum transfer amount: £1,000
You can also the following bonuses:
| Transfer Value | Cashback |
|---|---|
| £1,000 | £100 |
| £20,000 | £300 |
| £50,000 | £600 |
| £100,000 | £1,000 |
How much to transfer to get headline cashback bonus: £100,000
How you will get the bonus: Any transfers made into an investment account will receive the cashback directly in the same account. If you have reached your ISA allowance for the year (£20,000), your cashback will get deposited into a bank account instead of your ISA. To register for the cash bonus you will need to transfer your account and then email Bestinvest by 30 June 2023.
When you will get the bonus: Around six months after the promotion ends.
Fees to consider: There is a 0.2% service fee for ready-made portfolios on investments of up to £500,000, a 0.1% fee on investments between £500,000 and £1,000,000, and no fee on investments over £1,000,000. Investments up to £250,000 will have around a 0.4% fee and there is a £4.95 fee per trade for share dealing.
Hargreaves Lansdown (HL) | up to £1,000 cashback
You can get up to £1,000 cashback for transferring your ISA to an HL’s Stocks and Shares ISA, Cash ISAs, or HL’s Fund and Share Account.
You need to apply to transfer your ISA and register for the cashback by 16 March, but you can get a three-month extension if you get in touch with HL. If you transfer away to another provider within a year, you risk not receiving your cashback.
Minimum transfer amount: £4,000
You can also the following bonuses:
| Transfer Value | Cashback |
|---|---|
| £4,000 to £9,999 | £50 |
| £10,000 to £19,999 | £100 |
| £20,000 to £39,999 | £150 |
| £40,000 - £59,999 | £300 |
| £60,000 - £79,999 | £500 |
| £80,000 or more | £1,000 |
How much to transfer to get headline cashback bonus: £80,000
Fees to consider: There is a 0.45% fee for holding the first £250,000 funds, 0.25% fee on funds between £250,000 and £1million or a 0.1% fee on anything between £1,000,000 and £2,000,000. For anything above that there is no fee.
Fidelity Stocks and Shares ISA - up to £500 cashback
To get the headline cashback bonus of £500, you must transfer your ISA by 5 April.
Minimum transfer amount: £5,000
You can also the following bonuses:
| Transfer Value | Cashback |
|---|---|
| £5,000 to £9,999 | £30 |
| £10,000 to £24,999 | £100 |
| £25,000 to £49,999 | £150 |
| £50,000 - £79,999 | £350 |
| £80,000 or more | £500 |
How much to transfer to get headline cashback bonus: £80,000
When you will get the bonus: Any cashback you are entitled to will be paid into your cash management account within 90 days of the offer ending. If you don’t complete your transfer by then, you will get your cashback within 90 days after the transfer is done.
Fees to consider: Fidelity charges 0.35% on investments valued under £25,000 if you have a regular savings plan, or £7.50 a month if you don’t. The 0.35% fee also counts for investments valued between £25,000 and £250,000.
The fee rate drops to 0.20% for investments between £250,000 and £1,000,000. If you hold over £1,000,000 you’ll be charged 0.20% a year for the first £1m, and there is no service fee for investments more than 1,000,000.
Interactive Investor - £200 referral bonus
A little different to the offers above- If you have a stocks and shares ISA with Interactive Investor, you can bag £200 for referring a friend. But note, you need to have an account so that the cashback can be credited to you.
As part of the offer, your friend will get their first year’s service plan worth £120, for free. For you and your friend to qualify, your friend must transfer or fund their account with at least £10,000 in cash and investments.
What to consider when transferring an ISA
Before you go ahead and transfer your ISA to another provider, here’s what you need to know.
To transfer an ISA you simply contact your provider and you will get a transfer form to fill out, and then you can switch accounts.
Any money you withdraw whilst your money is in an ISA means you risk losing the tax-free benefit. Transfers usually take between 15 to 30 days but you should check with the provider you are transferring to, just incase it’s more.
If you transfer your ISA during the current tax year, you must transfer all of the money invested in your ISA. Any money invested in previous years can be partly or fully transferred- the choice is yours.
Check if there are any transfer fees when switching ISAs. Ideally, you want to look for no charge, but check with your current and your new provider for any fees to ensure it is worth the switch.
And remember, your total ISA allowance (the amount you can deposit in your ISAs) in a single tax year is £20,000.
If you think none of the above ISAs are for you, check our best cash ISAs where you can opt for an easy-access ISA or fix your money in for one to three years.
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