ISA transfer to Monzo


Forgive my ignorance on this.

My wife has a cash ISA with another provider, am I right in saying if she wanted to transfer it to Monzo, that process is kicked off by the receiving bank(Monzo)?

(If yes, anyone know where to do it in the app?)

P.s. she attempted to just transfer out of her ISA account but it gave some discouraging warning say don’t do this or the money will loose the tax free status


Unfortunately Monzo don’t accept inbound transfers of ISAs at the moment but this is something that has been mentioned in the pipeline.

Ok thanks @krr13, will do the research on the cons of just transferring it and opening a Monzo isa

Another problem could also be that Monzo doesn’t offer ISAs itself. It offers them pretty much as a broker for for Charter, Paragon, Investec, Shawbrook and OakNorth. I can see Monzo allowing it to happen in the future but there are complications right now to achieve it.

Freetrade now allows transfers in. Not that relevant but worth looking into

Just noticed this topic is in feedback and ideas sorry, it was supposed to be chat one.

Yes indeed, whatever you to, don’t withdraw funds from the existing ISA in order to place them in another ISA elsewhere.

Transfer should only be effected as part of a managed process. That process is normally initiated by the new provider.

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Had a look last night and I can’t see any specific examples highlighting the actual negative and what ‘loosing tax free status’ actually means though ?

Say I have £2k and I withdraw it, put it into a new ISA. There will still be £2k but only downside is because you dont transfer it you eat into the ISA allowance for that year right ? (e.g. if allowance is 20k per year then in above example by withdrawing and opening a new ISA i just have an allowance of 18k)

Struggling to see what the disadvantage is if you have alot less than the yearly allowance saved.

Thanks all

You cant subscribe to more than 1 cash ISA in a tax year. So if you have already paid into a cash ISA this year even closing and opening a new one isnt permitted (I dont think). I think you need to transfer if you want to pay into another one.

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Ah ok thanks, more research required i’m clearly not fully up to speed on all the rules thanks all.

the rules -

probably more of an explanation with MSE -

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Is there a particular reason you are thinking ISA? You can get a better interest rate using easy access savings accounts or tying your money up for longer. I havent used an ISA since the introduction of the Personal Savings Allowance which allows a basic rate tax payer to earn up to £1000 in interest tax free (£500 for higher rate).

Yea good shout, one thing my searching last night showed was the same @krr13 we’re not hell bent on the ISA, just trying to get my head around it if thats the best %

it’s not.

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Probably not, but doing all this on behalf of my wife who might sacrifice a small gain for the convinience of everything in one place… but yes as you say… time to get my research hat on and start comparing. Many thanks all very useful to validate my understanding

Point is, even if your ISA fund is small, withdrawing rather than transferring is not a good idea. And the transfer is handled for you.

Is Monzo looking at being able to offer Cash Isa transfers? I’d move my money across if this becomes available

If you are in the market for a cash ISA I’d be inclined to shop around. The cash ISA Monzo is offering through Shawbrook is 1.12%, with next-day withdrawal. I have a cash ISA with the Principality BS at 1.2% and withdrawal is the same day. Coventry BS are currently offering 1.46% easy access, transfers are allowed but withdrawals are limited to 3 a year:

I’m aware Monzo cash ISA’s do not have the best interest rates - I am currently earning 1.4% elsewhere but I’d still like the option to transfer in

But monzo aren’t an ISA provider.