Help With S&S ISA

TheBunting

Hi everyone,
I'm back after a long hiatus from the forums. Hope everyone is doing well. :j

I have a question for anyone that is able to help. I have now got a Help to Buy ISA set up as my cash ISA which I have been putting the £200 into every month to help go towards buying a house. However, I realised £200/month was not going to be enough to get me anywhere as fast as I wanted. So I set up a Stocks and Shares ISA on an app called Moneybox. Yes I now know, not the best place to set up an ISA due to fees etc. After I realise I am better off setting a better Stocks and Shares ISA up, I want to set one up elsewhere. However, I have been depositing into this Moneybox one every week after payday just whatever money I could spare over and above the money going into my H2B ISA. Will I be able to just transfer this ISA over to a new one and continue to deposit into the new one? Or do I need to wait until the end of the tax year to then transfer the old one and then deposit money into my new one?

Any help appreciated.
Thanks :beer:

Reed_Richards

You don't have to wait until the end of the tax year to make an ISA transfer. And you can make deposits into the new one after the transfer.

TheBunting

Perfect, thanks for the speedy reply

I have a couple more quick questions then. Who do I contact to kickstart the process of transferring the Moneybox ISA over to my new HL ISA?

masonic

TheBunting wrote: »

I have a couple more quick questions then. Who do I contact to kickstart the process of transferring the Moneybox ISA over to my new HL ISA?

The receiving provider, so in this case HL.

TheBunting

I have now downloaded and printed off the transfer form from HL. I have filled it in but trying to find details from Moneybox about my existing ISA. Have started a support chat over there to try and get help getting the info I need to complete the form and then send it away to get the ball rolling. I have not done anything like this before, does anyone know roughly how long this will take?

Meanwhile, I think I will just hold money in an online savings account until the setup is complete to invest in my new HL ISA. :beer:

masonic

TheBunting wrote: »

I have not done anything like this before, does anyone know roughly how long this will take?

You'll be transferring in cash so it should be done within a month, perhaps sooner.

Alexland

Sorry I might have missed something but both Moneybox and HL have the same 0.45% platform fee. The fund costs with Moneybox are just over 0.2% and with HL it's possible to go lower but the benefit will be marginal on a small account.

The more important question is if you are planning to buy property in the near future do you have a 5+ year (preferably 7+ year) investment timescales to weather the market ups and downs? Or are you taking a gamble with a good chance of withdrawing at a loss?

Alex

TheBunting

This is why I wanted to do it on the HL platform. I want to use this ISA not just for buying property, but for saving in general. Meaning I can add different funds to my portfolio for shorter/longer term investments. Moneybox I had to gather all the money together and literally choose reserved, neutral or risky.

As fun as Moneybox looked, I also did not fully trust it 100% which stopped me investing as much as I possibly could (even though it is FSCS protected). With it being on the HL platform where I know its legit and I have the freedom to add different funds to my portfolio, it will 100% entice me to invest more, save more and spend less on rubbish lol

Alexland

An HL S&S ISA isn't suitable for any short term savings needs as it is intended for people investing over the medium term 5+ years and long term 15+ years.

I guess you could invest in a short term gilt fund (government bonds near their redemption date) but you would almost certainly get a better return with no risk in a cash non-ISA account.

HL offer a cash based Active Savings product but it is not ISA wrapped.

For your medium and long term needs there is a lot of competition in the ISA market with high quality platforms such as Vanguard Investor who charge substantially lower fees than HL. Vanguard are one of the world's largest asset managers so very secure.

Alex

TheBunting

Alexland wrote: »

An HL S&S ISA isn't suitable for any short term savings needs as it is intended for people investing over the medium term 5+ years and long term 15+ years.

I guess you could invest in a short term gilt fund (government bonds near their redemption date) but you would almost certainly get a better return with no risk in a cash non-ISA account.

HL offer a cash based Active Savings product but it is not ISA wrapped.

For your medium and long term needs there is a lot of competition in the ISA market with high quality platforms such as Vanguard Investor who charge substantially lower fees than HL. Vanguard are one of the world's largest asset managers so very secure.

Alex

Thanks for all the info man. I have normal savings accounts aswell that I put money into every week also when I get paid. I just want to diversify the way I save and not have all my eggs in one basket. I haven't actually looked into Vanguard so I will right now. I haven't sent away my transfer form for HL yet so if I like the look of Vanguard, I can still go for that. I am new to this aswell so if anyone has any websites, youtube videos or books that they recommend for good quality info, please feel free to let me know.

Thanks :beer:

kidmugsy

If you specifically want to save at a higher rate for house purchase have you considered a LISA? You need to be under forty. You can put in up to £4k per tax year and the ever bountiful taxpayer adds 25% e.g. he adds £1k to your £4k.

The three current providers of Cash LISAs are building societies - the Nottingham, Skipton, and (I think) Newcastle.