Transferring your ISA can be a good way to make the most of your savings, allowing you to keep on top of the latest bonus rates and deals.
Why transfer a cash ISA?
By transferring your money when your current rate drops, you can take advantage of new offers on ISAs, and avoid taking the hit from a drop in rates when bonus periods come to an end.
Why transfer an investment ISA?
You may be unhappy with the performance of your existing investment ISA, or your objectives may have changed. By transferring your existing investment ISA to a new provider, you can find a deal that is better suited to your investment objectives without losing valuable tax benefits.
New research from Standard Life has offered some interesting insights into the savings habits of people approaching retirement age in the UK. The study found that more than four times as many UK adults invest in cash ISAs (41%) than stocks and shares ISAs (9%).
According to the research, older investors are most likely to take risks and chase higher returns by saving in stocks and shares ISAs. Standard Life found that 11% of investors aged 55 plus use their ISA allowance to invest in stocks and shares, compared with just 7% of those in the 35-44 age group.
Investors can put up to £11,520 in a stocks and shares ISA in the current tax year, of which up to £5,760 is eligible for a cash ISA.