ISA transfer warning: Providers may not accept the funds – what can be done with savings? | Personal Finance | Finance

ISA savings can be moved between providers to take advantage of better interest rates and other features. However, while all providers must allow savers to move their savings out of their accounts, receiving providers are under no obligation to accept those same funds.

Each type of ISA has differing rules on who can open an account which is usually based on age and location.

However, savers have a wide range of options when it comes to where they can deposit their assets.

ISAs can be opened with:

  • banks
  • building societies
  • credit unions
  • friendly societies
  • stock brokers
  • peer-to-peer lending services
  • crowdfunding companies and
  • other financial institutions

Savings held in ISAs are safe and protected but, just as with most savings accounts at the moment, interest rates are likely to be low.

Savers across the UK are generally struggling at the moment as the economy has forced the Bank of England to keep the base rate low, which has a corresponding effect on retail financial firms.

The Bank of England recently decided to keep the base rate at 0.1 percent.

The next decision on this will occur in September and they have detailed that negative rates are not off the table.

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