ISA transfer: Is it as simple as they say?

I’ve had a cash ISA since I opened my student bank account 8 years ago, and I’ve been drip-feeding it with money over the years. But until recently, I hadn’t paid much attention to the rate of interest I was getting.

So when I realised that NatWest was offering me a sorry 0.5% I decided to switch, and set about arranging an ISA transfer.

At first I considered transferring to another bank with a better rate but I found that most of the best cash ISA deals were open to existing customers, which excluded ISA transfers.

And I don’t know about you but my online existence is already dominated by more passwords and login details that my brain can record, so the idea of another bank account, with another bank, seemed like a bit of a chore.

Instead I found a one year fixed rate ISA with my existing bank, paying 2.65%.

I could have got a rate 1% better with another bank but for the sake of being able to see all my accounts in one place when I log into my online banking, I personally preferred this option.

I expected the transfer process to be complicated. I imagined drowning in a sea of forms, so I went to the nearest Natwest branch to ask for some help.

Luckily, I was being over dramatic; it genuinely is a simple process.

I was directed to go online and fill in an ISA transfer form – although I could have done it by post as well. That way my money will be moved across to a new account without losing any of the tax-free benefits.

Once it’s filled in and submitted the bank does it all. They’ll open the new account and move my money across for me in April, when the year fixed term starts.

So, come April my money will be sitting in an account with a better rate, all at the click of a button.

Even moving to another bank is easy, so I’m told – I was assured by staff that it just involves filling in a form at your bank or building society of choice and waiting for them to move your money over.

Have you transferred an ISA? If so, was it a painless process? Let me know via email lois.avery@confused.com or on Twitter @confusedlois.

And if you’re money’s floundering in your current ISA you can shop around online before making the move.  And don’t forget you don’t have to go to your branch to arrange the transfer, this can all be done online too.