Quick stocks and shares ISA question

stefankemp · 14 January 2018 at 3:36PM

Hi all,

I've just taken the plunge and opened my first stocks and shares ISA. I somewhat foolishly choose a provider based on a friend's recommendation, but being a first time investor I hadn't realised that the minimum lump sum investment was per fund and not per account. As such I cannot afford my ideal portfolio at this time on this platform.

My question is this: given that I have not paid any cash into the ISA, can I open another stocks and shares ISA elsewhere and leave the original untouched? How about transferring the £0 balance to another provider, am I allowed to do that and then start contributing? If so, am I allowed to pay in immediately or do I have to wait for the transfer of the £0 to be finalised?

Sorry if these are pretty basic questions - I'm new to this and couldn't find specific answers to my questions.

Thanks

barak · 14 January 2018 at 4:44PM

As you haven't subscribed to the original ISA, you can simply open one with another provider.

stefankemp · 14 January 2018 at 5:26PM

So it doesn't matter that I opened the account, only that I haven't paid anything in?

Alexland · 14 January 2018 at 5:28PM

Yup but beware any exit fees to close the account.

barak · 15 January 2018 at 10:16AM

That's it!

barak · 15 January 2018 at 10:22AM

I don't think exit fees can be charged for an unfunded ISA. Even if funded, there is a cooling off period which should be described in the Key Information/Terms & Conditions.

eskbanker · 15 January 2018 at 2:05PM

stefankemp wrote: »

I've just taken the plunge and opened my first stocks and shares ISA. I somewhat foolishly choose a provider based on a friend's recommendation, but being a first time investor I hadn't realised that the minimum lump sum investment was per fund and not per account. As such I cannot afford my ideal portfolio at this time on this platform.

Without visibility of either your ideal portfolio or the amounts you're planning to invest, I'd observe that it would be quite unusual for multiple small investments to be the optimal strategy for a newbie investor with limited available capital. Not impossible but unlikely IMHO, what do you have in mind?

Alexland · 15 January 2018 at 6:09PM

barak wrote: »

I don't think exit fees can be charged for an unfunded ISA. Even if funded, there is a cooling off period which should be described in the Key Information/Terms & Conditions.

I just read the HL T&Cs (as I know they like applying closure fees) and yes their S&S ISA, JISA and dealing account can be closed with 14 days and their Lifetime ISA can be closed in 30 days from account opening without incurring a closure fee.

Alex.

Quick stocks and shares ISA question

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