Hbos isa investor withdrawal

Moxham_Mae

Hi there,

I have an HBOS ISA INVESTOR account from Halifax with only about £11,000 in it but want to withdraw the funds to purchase land abroad.

I've read that it's best to transfer the money to a CASH ISA and then withdraw the cash. Is this the best option and can anyone tell me what charges I might incur or how long the process is likely to take? Also, is it worth waiting until after 5th April to make the most of interest?

Thanks!

dunstonh

I've read that it's best to transfer the money to a CASH ISA and then withdraw the cash.

no. That would be totally pointless and delay things.

Also, is it worth waiting until after 5th April to make the most of interest?

You are not earning interest. So, it doesnt matter. You are subject to investment returns which will mean your value could go down or up on a daily basis. Nobody can say it if it will be higher or lower on the 5th April compared to today. Quite a lot of funds go XD on 31st March/1st April. So, it may be worth holding on until then if yours does. However, the unit price often drops a little after a fund goes XD. So, no guarantees there.

jimjames

Moxham_Mae wrote: »

I've read that it's best to transfer the money to a CASH ISA and then withdraw the cash. Is this the best option ?

Where did you read that and what was their reasoning? Are you able to provide a link?

I can't see any reason why you would want to transfer. Just sell the investments and withdraw the cash. Easy as that.

Moxham_Mae

Thank you!

I don't recall where I initially read about transferring to a cash ISA. I couldn't find any information on how to withdraw and perhaps the article below on transferring was confusing me:

'You can transfer your stocks & shares ISA into cash ISAs

This may be useful for people coming up to retirement who don't want to take a risk with their money.

If you're going to do this you'll need to contact your new cash ISA provider and tell them you want to transfer money from your stocks & shares ISA. Never just withdraw the money, you'll lose all the tax-free benefits.

Once you've filled out any forms, the transfer may take a few weeks. If you're opening a cash ISA with a different provider to where your stocks & shares ISA was, then you'll likely pay a closing fee, if you're switching with the same provider, there won't be a fee.

(As a new user I can't share links but it was a moneysavingexpert article: savings/stocks-shares-isas)

...but having read this article I think you may be right to just sell up:

thisismoney .co.uk/money/diyinvesting/article-2749784/Isa-rip-Savers-moving-shares-cash-earn-pitiful-hit-sky-high-fees.html

Moxham_Mae

Thanks dunstonh! This is helpful.
Maybe I will wait to see if the value goes up as I can easily check my online banking. Can always wait until it balances out again if the unit price drops.

jimjames

Moxham_Mae wrote: »

Thanks dunstonh! This is helpful.
Maybe I will wait to see if the value goes up as I can easily check my online banking. Can always wait until it balances out again if the unit price drops.

When do you need the money for the land? Could you wait 2-3 years if the value drops 50%? Just because the price drops doesn't mean it will come back quickly. Of course it might increase - the thing is you don't know.