Could combining your ISAs make life easier?

Please see our glossary for information on the financial terms used in this article.

If you’ve opened multiple Individual Savings Accounts (ISAs) over the years, keeping track of them all can become a bit of a juggling act. Different types of ISAs, providers, websites and statements can make it difficult to stay on top of your savings and investments. By consolidating your ISAs into a single pot, you could simplify your finances, gain a clearer picture of your portfolio performance and potentially cut down on fees.

Why consolidate your ISAs?

One key advantage of bringing your ISAs together is that it provides easier management. You’ll deal with just one provider, meaning fewer logins, less paperwork and hopefully less time and effort managing your investments. For instance, if you want to top up your investment or switch funds, you will only have to go through one provider’s process rather than dealing with several.

Having all your ISA investments under one roof could also help you save money over time. Since investment fees vary between providers, consolidating your accounts gives you a chance to review costs and potentially reduce the total amount you’re paying in fees.

What is an ISA transfer?

An ISA transfer allows you to move money you've built up in ISAs over previous tax years to a new provider (or to consolidate into one provider) without losing any of the tax-efficient benefits. You can transfer as many ISAs to another provider as you like, at any time, and choose to move the full balance or just a portion. You can also transfer Cash ISAs into Stocks and Shares ISAs (or vice versa).

There’s no limit on the value of transfers, as long as they meet your new provider’s minimum investment requirements. Best of all, ISA transfers don’t count towards your annual ISA allowance, so you can continue to invest new money up to the full limit for the current tax year.

To keep your savings tax-efficient, it’s crucial you always use your new provider’s transfer service when moving money from one ISA provider to another. Never withdraw the money yourself as this will cause it to lose its tax-efficient status when you come to reinvest it.

Transferring an ISA to M&G

If you have an ISA, Junior ISA or even a Child Trust Fund (CTF) from previous tax years with other providers, it’s easy to transfer to M&G. We won’t charge you for transferring your investment; however, it’s always best to check with your current provider first because they may apply a charge when you transfer your investment. If you only intend to move part of your investment to M&G, you should also check that your current provider allows a partial transfer.

If you are unsure whether an investment is right for your individual needs, you should speak to a financial adviser. Please remember that whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.

The tax rules for ISAs and Junior ISAs may change in the future, and their tax advantages depend on your individual circumstances.

Visit our Transfer your ISA or Junior ISA to M&G page for more information. The M&G ISA and The M&G Junior ISA are Stocks and Shares ISAs only.
 

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed here should not be taken as a recommendation, advice or forecast.