Cash ISA to S&S ISA

schiff

I have a cash ISA for 2009-10 which will produce interest when transferred to a S&S ISA. Is it possible to stipulate the transfer of the capital (which is in a convenient round figure) and withdraw the interest as cash? If so, how do I go about it please?

badger09

schiff wrote: »

I have a cash ISA for 2009-10 which will produce interest when transferred to a S&S ISA. Is it possible to stipulate the transfer of the capital (which is in a convenient round figure) and withdraw the interest as cash? If so, how do I go about it please?

If you know how much interest will be credited to the cash ISA, the simplest way would be to withdraw that first, then arrange for the balance to be transferred.

Alternatively, ask the S&S ISA provider to transfer the whole amount, then withdraw the interest element once the transfer is complete.

schiff

badger09 wrote: »

1. If you know how much interest will be credited to the cash ISA, the simplest way would be to withdraw that first, then arrange for the balance to be transferred.

2. Alternatively, ask the S&S ISA provider to transfer the whole amount, then withdraw the interest element once the transfer is complete.

1. The interest would only arise on the transfer, so I wouldn't know what it was unless I estimated it.

2. The interest element would be in shares or a fund - so not that easy.

eskbanker

schiff wrote: »

2. The interest element would be in shares or a fund - so not that easy.

It would be transferred as cash into the S&S provider and could be withdrawn in cash form before you invest the rest.

However, since the capital won't remain in anything resembling a round figure as soon as you've invested it, it seems odd to withdraw interest to leave an arbitrarily round figure if that's what you were suggesting!

Archi_Bald

schiff wrote: »

2. The interest element would be in shares or a fund - so not that easy.

It wouldn't go into a share or a fund unless you purchase a share or a fund with the cash that your S&S ISA provider would have transferred for you, ready for you to make purchases with.

The transfer is cash only, and does not involve the buying of shares/funds.

So you just make a note of your cash ISA balance before the transfer and then compare that with the cash balance in your S&S ISA after the transfer. The delta is interest (assuming your S&S ISA cash balance was £0 before the transfer).