The best bonus offers when you transfer your cash ISA

When looking at ISAs, don’t just look at the rates on offer. Keep an eye out for a cash ISA bonus. Much like current account switch incentives, savings providers and banks also offer a cash lump sum to entice you to move your money.

If you’re in the market to move your cash ISA, here’s everything you need to know.

Why do banks offer a bonus?

With Finder stats showing that almost half of Brits have a cash ISA (46%), banks are keen to make sure you’re saving your cash ISA with them. One way to make sure this happens is to offer a bonus if you transfer your existing ISA over.

There are several reasons why banks want you to move your ISA to them:

• Larger deposits. Banks target transfers as the deposits are larger. Rather than attracting someone who’s just putting away £50 a month, they get customers who already have £20,000, £50,000 or even £100,000.
• Customer “stickiness”. People don’t switch banks very often. Banks count on this – they know that if they can get you to switch, you’ll probably leave your money there for years.
• Cross-selling opportunities. Once you’re a customer, there are opportunities for banks to market their other financial products to you.

How to find cash ISA bonuses?

The best way to seek out cash ISA bonuses is to scan comparison sites like Finder or head directly to savings providers’ websites.

Each provider will have different qualifying criteria, and some might require you to have a current account with them. So make sure you’re happy with all the terms and conditions before committing.

Cashback vs interest

While a Cash ISA bonus is tempting, you need to make sure the math actually works in your favour. To see if a switch is genuinely worth it, you have to look at the account’s interest rate and the cash bonus as a package deal.

For instance, iFAST Global Bank’s 1-year fixed rate ISA has a rate of 4.20% AER, but offers cashback bonuses of £100 (transfers of £20,000 to £49,999), £250 (£50,000 to £99,999.99) and £500 (£100,000+). Once you add the interest earned to the transfer bonus, you’re then earning more than the market-leading interest rate.

• Deposit of £20,000. Total 1-year earnings of £944. (interest with cashback)
• Deposit of £50,000. Total 1-year earnings of £2,361.51. (interest with cashback)
• Deposit of £100,000. Total 1-year earnings of £4,723.01. (interest with cashback)

Fixed Rate ISA analysis with a transfer bonus

While it's tempting to focus solely on interest rates when hunting for the best cash ISA, the total value often lies in the perks. For instance, iFAST Global Bank is currently offering a cashback bonus on ISA transfers. Once you factor in these bonuses, a standard rate suddenly transforms into a market-leading deal.

iFAST Global Bank's 1-Year Fixed Rate ISA offers a 4.20% AER, alongside tiered cashback rewards ranging from £100 to £500 depending on your deposit size. For example, transferring £20,000 would yield £844 in interest at maturity, plus £100 in cashback, bringing your total one-year earnings to £944. For larger transfers of £100,000 or more, the combined interest and cashback reach £4,723.01. Thanks to that cashback boost, the overall return from iFAST Global Bank actually beats the current top standalone rate of 4.70% AER from Al Rayan Bank (via Meteor Savings).

With a £20,000 deposit

Deposit level	Provider	Interest rate	Interest earned	Cashback reward	Total 1-year earnings	Net advantage
£20,000	iFAST Global Bank	4.20%	£844.00	£100.00	£944.00	—
£20,000	AlRayan Bank	4.70%	£940.00	£0.00	£940.00	+£4.00 (iFAST Global Bank)
£20,000	Nationwide	4.50%	£900.00	£0.00	£900.00	+£44.00 (iFAST Global Bank)
£20,000	Virgin Money	4.41%	£882.00	£0.00	£882.00	+£62.00 (iFAST Global Bank)
£20,000	Barclays	4.40%	£880.00	£0.00	£880.00	+£64.00 (iFAST Global Bank)
£20,000	Lloyds	4.30%	£860.00	£0.00	£860.00	+£84.00 (iFAST Global Bank)
£20,000	Santander	4.30%	£860.00	£0.00	£860.00	+£84.00 (iFAST Global Bank)

With a £50,000 deposit

Deposit level	Provider	Interest rate	Interest earned	Cashback reward	Total 1-year earnings	Net advantage
£50,000	iFAST Global Bank	4.20%	£2,111.51	£250.00	£2,361.51	—
£50,000	AlRayan Bank	4.70%	£2,350.00	£0.00	£2,350.00	+£11.51 (iFAST Global Bank)
£50,000	Nationwide	4.50%	£2,250.00	£0.00	£2,250.00	+£111.51 (iFAST Global Bank)
£50,000	Virgin Money	4.41%	£2,205.00	£0.00	£2,205.00	+£156.51 (iFAST Global Bank)
£50,000	Barclays	4.40%	£2,200.00	£0.00	£2,200.00	+£161.51 (iFAST Global Bank)
£50,000	Lloyds	4.30%	£2,150.00	£0.00	£2,150.00	+£211.51 (iFAST Global Bank)
£50,000	Santander	4.30%	£2,150.00	£0.00	£2,150.00	+£211.51 (iFAST Global Bank)

With a £100,000 deposit

Deposit level	Provider	Interest rate	Interest earned	Cashback reward	Total 1-year earnings	Net advantage
£100,000	iFAST Global Bank	4.20%	£4,223.01	£500.00	£4,723.01	—
£100,000	AlRayan Bank	4.70%	£4,700.00	£0.00	£4,700.00	+£23.01 (iFAST Global Bank)
£100,000	Nationwide	4.50%	£4,500.00	£0.00	£4,500.00	+£223.01 (iFAST Global Bank)
£100,000	Virgin Money	4.41%	£4,410.00	£0.00	£4,410.00	+£313.01 (iFAST Global Bank)
£100,000	Barclays	4.40%	£4,400.00	£0.00	£4,400.00	+£323.01 (iFAST Global Bank)
£100,000	Lloyds	4.30%	£4,300.00	£0.00	£4,300.00	+£423.01 (iFAST Global Bank)
£100,000	Santander	4.30%	£4,300.00	£0.00	£4,300.00	+£423.01 (iFAST Global Bank)

*Rates are correct as of 15 July 2026 and are subject to change.

Net Advantage is calculated as the difference between iFAST Global Bank's total first-year net earnings (including applicable cashback) and the total first-year net earnings of each comparator shown in the table.

When is it not worth it?

It’s not worth it if the interest rate on the ISA is lower than a top-paying rival without a bonus. There’ll be a tipping point, where the amount you can earn over the first year is either higher or lower than what you’d get from another account.

Always compare the total return – the interest plus the bonus – against other rates to see if it’s really the best place for your money. For example, iFAST Global Bank’s 1-year Fixed Rate ISA at 4.20% AER currently beats the market-leading rate of 4.70% AER from AlRayan Bank, when you add the cash ISA bonus into the mix.

How to make a transfer

Making an ISA transfer is relatively simple. The golden rule is not to withdraw the cash yourself, as it’ll instantly lose its tax-free status and count towards your ISA allowance for the current tax year.

Here’s a step-by-step guide:

• Step 1. Check if your current ISA has any exit fees or penalties. If you’re in the clear, move on to step 2.
• Step 2. Apply for your chosen ISA.
• Step 3. During your application, select that you want to transfer an ISA and complete the required form. You’ll need the name of your existing ISA provider, the sort code and account number and your National Insurance number.
• Step 4. Decide whether you want to make a full or partial transfer. If you are looking to get a cash ISA transfer bonus, check the T&Cs, as sometimes payments are only made for full transfers.
• Step 5. Sit back and wait. Transfers between cash ISAs should take no longer than 15 working days.

What to be aware of

There are some key parts of the ISA transfer process to be aware of to ensure that it goes smoothly and doesn’t leave you out of pocket.

1. Check that you don’t have any early withdrawal charges from your current ISA. If you have a fixed-rate ISA and are leaving before the end of the term, you could risk losing interest.
2. Always have a look to see whether your chosen provider will allow a partial transfer, if that’s what you want to do. It may well be that they do, but it needs to be a partial transfer of the previous tax year’s ISA funds, which is the case with iFAST Global Bank’s fixed-rate ISAs.
3. Whatever you do, don’t withdraw the cash from your existing ISA yourself. The moment that money touches a standard account, it loses its tax-free status forever. Plus, if your savings exceed the £20,000 annual allowance, you won’t be able to put it all back into a new ISA.

Bottom line

Cash ISA transfer bonuses are a fantastic way to pocket some extra cash and give your tax-free savings a boost.

However, it’s vital to check if the bonus genuinely makes the switch worthwhile. For example, iFAST Global’s tiered cashback offer of £100 to £500 combines a solid bonus with a highly competitive interest rate, making it one of the top deals on the market. Compared to if a provider offers a smaller bonus paired with a lacklustre rate, the transfer is rarely worth the hassle.

Frequently asked questions