Previous years' cash ISA transfer

Hiya, I’m trying to do something with a previous year’s fixed-rate cash ISA savings, which I just sort of left to do its own thing after the fixed period ended as the rate of the new cash ISA it went on was considerably better than I would’ve got opening a new one at the current pitiful rates.

I reckon as I already use Freetrade for a stocks & shares ISA I might as well give this transfer a go with yourselves, but I have some quesions specific to my situation:

  1. It was originally a 2014/15 cash ISA which matured at the end on '18, and got automatically put on another one due to mature November this year - if I transfer the whole lot (eating the early withdrawal fee from the current provider) into a S&S ISA with yourselves, does it get clearly distinguished as a previous year’s allowance, and not impact my full £20k allowance for 21/22 at all?

  2. I need to withdraw some of it pronto, but the cash ISA provider doesn’t allow for partial withdrawals on it, just a full transfer or full closure (and if I closed it I would obviously be throwing away my ISA status on it) - if I transfer it all into a S&S with yous lovely lot, could I then immediately withdraw part of it to my nominated bank account (obviously losing the ISA status on just that withdrawn part), leaving the rest in there in its old ISA wrapper and still not interfering with my as-yet unused 21/22 ISA allowance?

Hope the above’s all clear on what it is I’m trying to do, ta

  1. Yes, if you do an ISA transfer it will not impact this year’s allowance
  2. Once transferred you can withdraw as much as you like without impacting this year’s allowance

The key is to transfer the ISA between providers and not withdraw / fund ( which I think you’ve grasped ).

A cash ISA with a withdrawal fee and no partial withdrawals sounds a woeful product :frowning_face:


Cool, I just wanted to avoid any awkward situations with restrictions or fees if I just barrelled ahead with it - I don’t really look into Cash ISA rules much now they’re terrible, haha

A cash ISA with a withdrawal fee and no partial withdrawals sounds a woeful product

You’re telling me! They automatically moved me onto it once I’d just left the original fixed term past maturity. Luckily this one matures this year so the fee won’t be crippling

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I’ll probably initiate this transfer process tonight or tomorrow, given that it could take 30 days or even maybe a little bit longer to complete at the moment.

I’m curious if anyone else here’s done any previous year’s cash ISA transfers into Freetrade while already having a Freetrade S&S ISA up and running for the current/just-gone tax year?
Marking ‘Cash Transfer Only’ on the form seems straightforward enough, but is there anything to be extra careful about - I don’t want any of my current ISA stocks already held with Freetrade being touched during the transfer process, but suppose I can just carry on trading shares myself in my FT ISA as normal while I wait for the new transferred cash funds to arrive?

I’m guessing it just shows in your account on the app as simply adding the total of the transferred amounts to your current available cash balance, so everything’s in the same single S&S ISA pot, no matter how many previous years’ savings you transfer in?

And should I (or would I need to) notify Freetrade if I were to open a new ISA for the current tax year with another provider (keeping my current FT one from 20/21 running, obviously), so that the “£20k remaining” part on the account page is updated to £0 remaining?


Yes. The transferred-in money will just be added to your account balance one day, same as if it had been a top-up from your bank. In the meantime you can carry on buying and selling stocks as usual. There’s no distinction within the account regarding money added in one tax year or another, it’s just one total amount.

No, you do not need to notify them (and I’m sure they wouldn’t have a way to record it if you did). This is the one potential ‘gotcha’ in the ISA system, no ISA provider knows what you might have contributed to other ISA providers in the same tax year, and they won’t track it for you.

If you go over your limit, HMRC will figure it out eventually and you’ll have to set it straight and pay extra fees to ‘repair’ (that’s what they call it) your ISA. It’s entirely on you to keep track if you split your ISA contributions. Note that you’re only allowed to split your contributions across ISAs of different types (cash, stocks & shares, LISA, IFISA), you’re not allowed to contribute to two of the same type in one year.

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4 to 6 weeks to transfer in an existing cash ISA is very painful when you are wanting to buy stocks yesterday

Hi! I’ve got a question on a similar theme of transferring in previous year cash ISAs.

Looking to open a Freetrade S&S ISA for this year and funding it by transferring part of a cash ISA opened last year. That seems possible and straightforward. The question I have is, will Freetrade allow me to do another partial transfer-in later in the same financial year and/or in future financial years (whilst keeping everything within the ISA tax wrapper and not counting against by annual £20k deposit allowance?)

As far as I’m aware there are no ISA rules which limit how many ISAs you can transfer. If the funds you are transferring (full or partial transfer) are from a previous year’s ISA, when the old ISA provider makes the transfer they will inform Freetrade that the transfer only contains cash from previous tax years. Then when Freetrade receive the transfer, they will apply the funds to your Freetrade ISA and will not deduct anything from your annual allowance.

If you were transferring an ISA with current year subscriptions, then Freetrade would be informed how much of the transfer contains current year subscriptions by the old ISA provider and Freetrade should then deduct that same amount form your current year’s allowance that is shown to you on the Freetrade app. Freetrade effectively take on the administrative burden of tracking current year subscriptions and reporting how much you’ve subscribed to HMRC at the end of the tax year.

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