How to get an ISA bonus with cashback
With ISA season fast approaching, we’ve rounded up ISA bonus deals with some providers giving away as much as £1,000 cashback when you transfer to them
Banks competing for business are offering up to £200 “free” cash if you transfer your current account to them, but Individual Savings Accounts (ISA) providers are also offering ISA bonuses for switching providers.
With ISA providers looking to drum up more business for the new tax year, some are offering as much as £1,000 when you switch your ISA over. But, before you do this, make sure it is worth it and check the terms and conditions carefully.
The rates on cash ISAs are more attractive than they have been in years due to the Bank of England’s continued interest rate rises. But savers could boost their savings further by taking advantage of switching offers.
We list the platforms offering ISA bonuses, as well as things to consider when transferring your ISA.
ISA Bonus: The best cashback offers for switching ISA providers
Bestinvest - up to £1,000 cashback
New and existing customers can get up to £1,000 cashback for transferring their full account to a Bestinvest general Investment Account, ISA, Junior ISA or SIPP – but this deal only runs until 15 March.
The offer only applies to transfers from another investment provider, not to cash deposits from a bank account. You need to transfer at least £1,000. To get the full £1,000, you need to transfer £100,000.
You can get:
If you transfer into an investment account the cashback will be deposited directly into that account. Money will be paid directly into ISA accounts, provided you have enough ISA allowance available in the tax year. The cashback will be paid into a bank account if your SIPP or ISA has reached its allowance limit, which is currently £20,000.
You’ll get the cash around six months after the end of this promotion. The amount of cashback you get depends on how much was transferred when the offer was live and then held over the six-month period.
To register, you have to transfer your account then email Bestinvest by no later than 30 June 2023 to claim.
Bestinvest charges a 0.2% service fee for its ready-made portfolios on investments of up to £500,000, a 0.1% fee on investments between £500,000 and £1,000,000, and no fee on investments over £1,000,000.
Fees for other investments range between 0.4% for investments up to £250,000 and 0% for investments over £1,000,000. There’s a £4.95 fee per trade for share dealing.
Hargreaves Lansdown - up to £1,000 cashaback
You can get anywhere between £50 and £1,000 cashback when you transfer an account holding £4,000 or more into HL’s Stocks and Shares ISA, Cash ISAs, or HL’s Fund and Share Account.
You must register for the cashback offer and apply to transfer by 16 March to qualify, but you can get in touch with HL for a three month extension. The provider might take your cashback if you transfer away within a year.
You can get:
£4,000 - £9,999
£10,000 to £19,999
£20,000 - £39,999
£40,000 - £59,999
£60,000 - £79,999
£80,000 or more
For funds, the platform charges fees of 0.45% on the first £250,000 you hold, 0.25% on anything between £250,000 and £1m, 0.1% on anything between £1,000,000 and £2,000,000 and no charge on anything above that.
The fee for shares is 0.45%, capped at £45.
To register for cashback, fill out the form on HL’s website.
Fidelity Stocks and Shares ISA - up to £500 cashback
Move your ISAs to fidelity and you could qualify for between £30 to £500 cashback. You have to apply to transfer your ISAs by 5 April.
Here’s what you can get:
£5,000 - £9,999
£10,000 to £24,999
£25,000 - £49,999
£50,000 - £79,999
£80,000 or more
Your cashback will be paid into your cash management account within 90 days of the closure of the offer. If you haven’t completed your transfer by then, you’ll get the cashback within 90 days after the transfer’s completion.
Fidelity does not charge a service fee on junior accounts, exchange traded investments held in an Investment Accounts or cash held in the account.
But it will charge a fee of 0.35% on investments valued under £25,000 if you have a regular savings plan, or £7.50 a month if you don’t.
The 0.35% fee also applies for investments valued between £25,000 and £250,000. It drops to 0.20% for investments between £250,000 and £1,000,000.
If you hold over £1,000,000 you’ll be charged 0.20% a year for the first £1m, and no service fee for investments over a 1,000,000.
interactive investor - £200 referral bonus
If you have a stocks and shares ISA with interactive investor (ii) you can get a £200 reward when you refer a friend. You will need a trading account for the amount to be credited to.
Your friend will also get their first year’s service plan, worth £120, for free. But to qualify your friend must transfer or fund their account with at least £10,000 in cash and investments.
Things to consider when transferring your ISA
You can transfer your ISA from one provider to another at any time, either to a different type of ISA or the same type of ISA.
If you’re transferring during the current year, you must transfer all the money you’ve invested in an ISA. But for money invested in previous years, you can choose whether to transfer all or only part of your savings.
To transfer your ISA simply contact your provider and fill out the transfer form to move your account.
If you withdraw the money without doing this, it will lose its tax free status, so make sure you’re following the correct process. Transfers take anywhere between 15 to 30 days.
Check that there is no charge to transfer your current ISA, as well as your new provider’s fees, to make sure it makes sense to move your money. If the new provider’s fees are higher, then it might be worth sticking with your current provider. Equally if the transfer fee would eat into your savings, it might not be worth it.