Halifax has issued an update as major changes to the limits that apply to its savings customers are coming in soon. The bank spoke out after a customer posed a question over social media asking: "How do I transfer in cash from another bank to a newly opened ISA?"
Halifax Explains ISA Transfer Options
Halifax responded to explain the options available for the transfer. The bank stated: "If you are registered for online banking, you can do this in the app or internet banking." The group also provided a link to guidance on its website about how to carry out ISA transfers. Account holders have the option to either make transfers from a stocks and shares ISA or a cash ISA into either a new Halifax cash ISA or into a new Investment ISA with the provider.
What ISAs Does Halifax Offer?
Halifax offers a range of cash ISAs, including flexible ISAs and one-year and two-year fixed accounts. The highest rate on offer is 4.2% with the two-year account. Customers can also choose from its stocks and shares ISAs, including accounts where they choose their own portfolio of investments or opt for a ready-made spread of investments. Halifax also offers a stocks and shares ISA for 18 to 25 year olds.
Major Changes to ISAs from April 2027
A major perk of ISAs is that any interest earnings or investment growth within these accounts is tax-free. However, some important changes to the ISA rules are coming up. From April 2027, the £20,000 ISA allowance will effectively be reduced, so you can only use up to £12,000 of the allowance for deposits into either cash or into stocks and shares accounts. The other £8,000 will still be there, but will only be available for deposits into stocks and shares accounts. Savers over the age of 65 will be exempt from the changes and will retain the current £20,000 allowance.
Interest Tax Rates to Increase
Another key change for savers from April 2027 is that the rate you pay on your taxable interest earnings is increasing. The rate is moving up across all three tax bands by two percentage points. This will increase the rate for basic rate taxpayers from 20% to 22%. Those on the higher rate will pay 42% tax on their taxable interest earnings, up from 40%, while those on the additional rate will see their rate move up from 45% to 47%.
