Withdrawing money from stocks and shares ISA

catoutthebag

Hi I have about £1000 in a vanguard lifestrategy ISA via Charles Stanley direct.

I need to take out about £500.

Is it a case of just withdrawing to my bank or is it more complex/getting charged?

Never done it before

Thanks

bigadaj

No, just sell the required amount or sum and then withdraw it.

Csd are percentage brokers so no buying or selling costs, it's two stage process though so will probably take around three days minimum to appear in your bank account.

Malthusian

Assuming that Vanguard Lifestrategy is your only holding, Charles Stanley's charges page suggests that they don't apply dealing fees on funds so withdrawing should be free of charge. You will get a more accurate answer if you phone them up however.

You should also check whether it is worth keeping the account open with such a small amount. If there is a fixed account fee the account should almost certainly be closed as you will be paying too much for the amount in the account. The website suggests that they don't charge fixed account fees if you only hold OEICs and Unit Trusts (like Vanguard LifeStrategy) but again I am making assumptions.

ColdIron

There is a 'Withdraw Money' option on the menu, enter 500 in the Withdrawal Amount field and select your Withdrawal Method. You will probably want to choose BACS unless you want a cheque in the post or pay £25 for a same day transfer using CHAPS. BACS will take 2 or 3 days

Be aware that that you must have £500 in your cash balance, if you don't you will need to sell some of your VLS first and wait a few days for it to settle before the cash is available. CSD do not charge to buy or sell funds

catoutthebag

Thanks for your responses.

I should add a bit more I think:

I'm 34, self employed, have personal pension, first time home owner, 10k cash savings, no debt.

I wanted to add more to the £1000, but need to withdraw £500 towards a bit of a employment tax deficit I want to make up.

So...With the £500 in, should I continue leave it in and start adding £50 monthly as I feel I can afford it now, or too small a amount and just add the £500 to my 10k cash savings and add the £50 to that?

I'll be withdrawing £500 from my cash savings too. This is the way I'll be doing it, so both pots take a small hit.

Guess I want to have stocks and shares too.

jimjames

Also bear in mind that with Vanguard funds you are charged dilution fees when you buy so selling soon afterwards will mean you get less back even if the market remains the same.
If you have sufficient cash savings to cover the amount then it seems pointless to sell funds in a S&S ISA instead. Pay it all from cash and build back up again so treat the S&S ISA as long term untouchable money.

ColdIron

I think this ended some time last year

cloud_dog

catoutthebag wrote: »

I'm 34, self employed, have personal pension, first time home owner, 10k cash savings, no debt.

I wanted to add more to the £1000, but need to withdraw £500 towards a bit of a employment tax deficit I want to make up

I'm a little confused as to why you feel the need to withdraw £500 from your investment account, and why you feel you need to withdraw £500 equally from savings and investment?

Generally speaking, investments are long-term activities and you shouldn't be looking to withdraw monies from investment because you have a shot-term cash requirement. I could understand it if you didn't have any cash savings or if the cash savings were 'locked' away for a period of time.

Is there any reason why you are unable / unwilling simply to take the money from your cash savings bearing in mind that you may be earning a pittance in interest on the cash savings?

badger09

cloud_dog wrote: »

I'm a little confused as to why you feel the need to withdraw £500 from your investment account, and why you feel you need to withdraw £500 equally from savings and investment?

Generally speaking, investments are long-term activities and you shouldn't be looking to withdraw monies from investment because you have a shot-term cash requirement. I could understand it if you didn't have any cash savings or if the cash savings were 'locked' away for a period of time.

Is there any reason why you are unable / unwilling simply to take the money from your cash savings bearing in mind that you may be earning a pittance in interest on the cash savings?

I agree in principle that OP should withdraw from cash savings, but he/she might be earning 5% on those cash savings, so hardly a pittance:cool:

cloud_dog

badger09 wrote: »

I agree in principle that OP should withdraw from cash savings, but he/she might be earning 5% on those cash savings, so hardly a pittance:cool:

Possibly but, even if I was getting 5% on my savings I would still get the money from savings and not investment.

I was also thinking more in terms that this type of activity is a mindset 'sort of thing'. If someone believes that 'dipping in to' investment funds is a first or equal course of action then personally I do not believe that will serve them well in the long run.

eskbanker

badger09 wrote: »

I agree in principle that OP should withdraw from cash savings, but he/she might be earning 5% on those cash savings, so hardly a pittance:cool:

Where can one earn 5% on (all of) the £10K mentioned in post #5?