BANKS GIVE POOR ADVICE ON CASH ISA TRANSFERS

A survey by the consumer group Which? has again uncovered poor advice by banks on cash ISA transfers.

Key points:

  • Which? survey highlights poor advice by banks on cash ISA transfers
  • Customers are given the wrong information on cash ISA transfers
  • An overview of the rules on cash ISA transfers

Which? survey on cash ISA transfers

The survey was conducted with most of the UK’s larger banks, placing 180 calls with 15 institutions in a mystery shopping exercise. The organisation asked 3 simple questions on cash ISA transfers.  Worryingly, the survey showed up the lack of training for bank staff when dealing with such queries. According to reports, the worst offender was HSBC, which only got the questions right 33% of the time.

In general we find that banks often misunderstand the rules, or mislead clients when discussing cash ISA transfers. It seems that staff often put people off who may want to move their cash ISAs to a new bank or even to a stocks and shares ISA.

Cash ISA transfers – what to bear in mind

You can easily transfer cash ISAs. Your bank cannot prevent this, and the process should not take too long. You need to ensure that you do not cash in your ISA, but ask your chosen cash ISA provider to transfer in your existing benefits or else you will lose your ISA’s tax-free status. Cash ISA transfers can take place with the whole of your existing ISAs, or part of the holdings. If transferring your current cash ISA you must transfer the whole amount as you cannot have 2 ISAs of the same type in the same tax year.

We are experienced in dealing with cash ISA transfers, so if you need any help, just contact us.

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Dan Woodruff

Certified Financial Planner & Chartered Wealth Manager at Woodruff Financial Planning
Financial Planning helps you to navigate and anticipate significant life changes. I want to help you to ensure your money is managed wisely to give you the financial security that will fund the future and lifestyle that is important to you.

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