Banks are trying to attract new current account holders by offering up to £200 “free” cash if you transfer to them, but there are also bonuses available for tax-free savings when switching Individual Savings Accounts (ISA).
ISA providers are looking to drum up more business and some are offering as much as £3,000 when you switch your ISA over or money for referrals and to cover exit fees.
But remember to do your research to make sure it is worth it and check the terms and conditions carefully.
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The rates on cash ISAs are becoming more attractive due to the Bank of England’s continued interest rate rises. But savers could boost their savings further by taking advantage of switching offers.
We list the platforms offering ISA bonuses, as well as things to consider when transferring your ISA.
ISA Bonus: The best cashback offers for switching ISA providers
Nutmeg: £25-£3,000 or 2,500-300,000 Avios points
Robo-wealth manager Nutmeg is offering between £25 and £3,000 or Avios points if you transfer to its ISA, pension or Junior ISA.
You must transfer at least £5,000 and the size of the reward will depend on the value.
The transfer must be made by 15 August and you should receive an email within 24 hours asking if you want the Avios or investment boost.
You can only choose one.
The offer ends at 1159pm on 15 August.
| Transfer Value | Investment Boost Reward | Avios Reward |
|---|---|---|
| £300,000+ | £3,000 | 300,000 |
| £200,000 - £299,999 | £2,000 | 200,000 |
| £150,000 - £199,999 | £1,500 | 150,000 |
| £100,000 - £149,999 | £1,000 | 100,000 |
| £50,000 - £99,999 | £500 | 50,000 |
| £30,000 - £49,999 | £200 | 20,000 |
| £25,000 - £29,999 | £150 | 15,000 |
| £10,000 - £24,999 | £50 | 5,000 |
| £5,000 - £9,999 | £25 | 2,500 |
interactive investor - £50 free trading credit and £200 referral bonus
If you open an ISA before the end of July, interactive investor (ii) will give you a £50 free trading credit.
You will be placed on the Investor Essentials Service Plan, which costs £4.99 per month, but each share trade usually costs £5.99.
The trading credits will be added to your account within five working days of opening and will expire at midnight on 29 December 2023.
Plus, if you already have a stocks and shares ISA with ii you can get a £200 reward when you refer a friend. You will need a trading account for the amount to be credited to.
Your friend will also get their first year’s service plan, worth £120, for free. But to qualify your friend must transfer or fund their account with at least £10,000 in cash and investments.
AJ Bell - £500 towards transfer costs
Some providers may charge you for transferring your money away.
When you transfer your pension, ISA or dealing account to AJ Bell, it will help cover the costs your current provider charges for transferring your account.
It will pay up to £35 per investment moved and up to £100 for general exit fees, up to a overall maximum of £500 per person.
To be eligible, the account being transferred must be valued at £20,000 or more.
Once you make the transfer, you will need to write to the platform with documentation and will receive the moneyback within 28 working days.
You must keep the transferred funds in your account for at least 12 months or the money could be reclaimed.
Fidelity - £500 towards transfer fees
Fidelity Personal Investing will reimburse any exit or redemption fees charged to a customer by their former provider when moving their Isa to the platform up to a maximum amount of £500 per customer.
The minimum transfer is £100.
Where a re-registration or transfer is not possible and the customer chooses to sell their investments held through another provider and subsequently make new investments through Fidelity, the platform will also cover up to £500 of fees.
This is based on a minimum £10,000 investment though.
Claims for this money must be made within six months from the date of transfer.
Bestinvest - up to £250 cashback
Investors can get up to £250 cashback when opening a stocks and shares ISA with Bestinvest but you will need to do it through TopCashback.
The cashback website is free to join and you will get £100 if you deposit between £500 and £4,999 with Bestinvest and £250 on amounts of £5,000 or more.
There is also £60 cashback on offer if you open a Junior ISA with Bestinvest by clicking through from TopCashback
The deposited funds must be invested within 30 days of account opening and must remain invested for six months before validation checks will take place and any cashback becomes payable.
You will only get the cashback if you are signed up to TopCashback and click through to the Bestinvest platform rather than going direct.
| Amount | Cashback |
|---|---|
| ISA Investment £5000+ | £250.00 |
| ISA Investment £500 - £4,999 | £100.00 |
| Junior ISA Investment £1,000+ | £60.00 |
InvestEngine - up to £50 investment bonus
Robo-wealth manager InvestEngine will let new users claim an extra £10 to £50 for their account.
The amount is randomly generated and will be added to your account within five business days once claimed.
You will need to remain invested in its exchange traded fund portfolios for a minimum of 12 months to keep the reward though.
There is also a randomly generated referral bonus of up to £50 if you recommend a friend who then opens an account.
To keep this bonus, you and the friend will be need to stay invested for 12 months from registration and maintain a minimum portfolio worth £100 plus the value of the referral funding.
Things to consider when transferring your ISA
You can transfer your ISA from one provider to another at any time, either to a different type of ISA or the same type of ISA.
If you’re transferring during the current year, you must transfer all the money you’ve invested in an ISA. But for money invested in previous years, you can choose whether to transfer all or only part of your savings.
To transfer your ISA simply contact your provider and fill out the transfer form to move your account.
If you withdraw the money without doing this, it will lose its tax free status, so make sure you’re following the correct process. Transfers take anywhere between 15 to 30 days.
Check that there is no charge to transfer your current ISA, as well as your new provider’s fees, to make sure it makes sense to move your money. If the new provider’s fees are higher, then it might be worth sticking with your current provider. Equally if the transfer fee would eat into your savings, it might not be worth it.
Additional contributions Tom Higgins
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