We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How do you set up a S and S Tracker ISA?
Comments
-
Investing 100% into one sector is a very bad way of investing. So, picking only a FTSE tracker is not a good idea.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
-
There are certain financial products that cannot go into an ISA, but there is no rule that you have to take all your investments from one firm.
You will be doing yourself a massive favour if you read up about the basics before you home in on selecting funds.
Hello,
I cannot open a cash isa and put £3000 with one firm and £2000 with another firm in the same tax year. Even if it's below the annual allowance. I could transfer part to a new firm though.
If I go through a broker and buy a FTSE tracker fund, can I only invest in one firm in a tax year? I can put £2000 into an isa direct with a firm and split that OK into a couple of different funds. If I go with the broker I can do exactly the same, but with a lower percentage charge? Or put it another way. I can only have one new s+S's isa a year.. If I use a broker, surely I cannot buy trackers from two firms in the same year, or is the isa with the broker classed as one? Thanks0 -
You can't put money into a product with one ISA provider and then partially transfer that money within the same tax year. During the tax year it's paid in the money must be with one and only one provider of each type (cash and S&S or all of one). A transfer is fine, but it must be all of that new money, not just part.
With a single broker you can have as many investments as you like. I have more than a dozen within a single ISA account, from many different fund companies.
Not all brokers will allow all funds or investment types. If you went direct to HSBC they would probably only let you buy HSBC funds with them. But you wouldn't normally want to do something like that because its main effect is just to reduce your choice.0 -
I think I understand now. If I buy using a fund manager, like I have been, then I have only invested in their funds or fund choices. If I use a broker next year, its OK for me to split the allowance between different funds and investments.
I find it hard to grasp then, you can only buy one stocks and shares isa in a tax year. So, I cannot put half my cash with two fund managers direct, but by using a broker i can invest in those two funds?0 -
stinktankcynic wrote: »Hello,
I cannot open a cash isa and put £3000 with one firm and £2000 with another firm in the same tax year. Even if it's below the annual allowance. I could transfer part to a new firm though.
If I go through a broker and buy a FTSE tracker fund, can I only invest in one firm in a tax year? I can put £2000 into an isa direct with a firm and split that OK into a couple of different funds. If I go with the broker I can do exactly the same, but with a lower percentage charge? Or put it another way. I can only have one new s+S's isa a year.. If I use a broker, surely I cannot buy trackers from two firms in the same year, or is the isa with the broker classed as one? Thanks
Seems you are mixing up various things there. You are right, you are only allowed to save into one cash ISA, and invest into one S&S ISA a year.
In a cash ISA, you are saving Pound Stirling cash. You cannot save any other currency into it. You are very likely to transfer your cash ISA to a different provider within a short period (12 to 36 or so months), just simply to get the best interest rate.
In a S&S ISA, you are investing your money into one or more funds, or shares, from any number of companies. Whilst you can transfer a S&S ISA, you probably are not doing it as frequently as a cash ISA because you are likely to have made a conscious decision which platform/broker gives you the best infrastructure for your investments Within the S&S ISA wrapper, you can change/add to/dispose off your initially selected funds as often as you like, including selecting any firm/company you fancy. Again, you would probably not change very often because that would defeat the whole object of investing, which has a long-term horizon, say 7 years upwards.
I can only urge you once again to throughly read up about the fundamentals of investing because you have demonstrated you don't know them. This isn't anything to feel bad about - nobody gets born with the knowledge. But if you don't acquire the knowledge, you are hurting only one person - yourself.0 -
You can't put money into a product with one ISA provider and then partially transfer that money within the same tax year. During the tax year it's paid in the money must be with one and only one provider of each type (cash or S&S or all S&S).
With a single broker you can have as many investments as you like. I have more than a dozen within a single ISA account, from many different fund companies.
Not all brokers sill allow all funds or investment types. If you went direct to HSBC they would probably only let you buy HSBC funds with them. But you wouldn't normally want to do something like that because its main effect is just to reduce your choice.
Thanks for the cannot transfer in same year info.0 -
stinktankcynic wrote: »So, I cannot put half my cash with two fund managers direct, but by using a broker i can invest in those two funds?
Yes, provided the broker/platform offers these funds.
A decent broker/platform will offer you a vast choice.0 -
Some even cheaper trackers are Vanguard - the FTSE 100 has TER of 0.15%.
Heres a link to the passive investing article on Monevator - if you work through it and read some of the other articles you should learn all you need to know about trackers and the best online broker to consider.
http://monevator.com/category/investing/passive-investing-investing/
I am with Sippdeal who are worth looking at.
Good luck!0 -
You can't put money into a product with one ISA provider and then partially transfer that money within the same tax year.
The keyword is partially [in the same tax year]. You can transfer as often as you like in the same tax year as long as all your deposits for the current tax year get transferred.
You can partially (or wholly) transfer from previous tax year as much as you like.0 -
The Vanguard one isn't necessarily cheaper. It has an initial charge of at least 0.5% that makes it more expensive unless its held for many years. Unless you buy the ETF version instead of the fund one.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards