Holding cash in Stocks and Shares Isa

nemoes

With the end of the tax year looming I'm looking to move some cash into my S&S Isa. By doing so am I correct in thinking it will be protected as in a cash ISA while I decide how best to invest it? I realise interest rates will be very low but its only a short term measure. Thanks.

NorthernJoe

Unless it's changed recently, FSCS protection is/was up to £50,000 in S&S ISA platforms 

badger09

nemoes said:

With the end of the tax year looming I'm looking to move some cash into my S&S Isa. By doing so am I correct in thinking it will be protected as in a cash ISA while I decide how best to invest it? I realise interest rates will be very low but its only a short term measure. Thanks.

NorthernJoe said:

Unless it's changed recently, FSCS protection is/was up to £50,000 in S&S ISA platforms 

I'm not sure exactly what OP is asking but here goes...
If you pay cash into your S&S ISA, it will be held in a tax free ISA wrapper. Most providers allow you to hold cash, but they don't segregate it in a Cash ISA, it just sits there in your S&S ISA account until you decide to invest it.

HOWEVER, given that the tax year ends tomorrow and its the weekend, it is possible your cash might not be treated by your S&S ISA platform as a subscription for 2019/20 & instead count towards your 2020/21 allowance. I use IWEB and fund by debit card but any contribution appears immediately, though its not taken from by bank account immediately. 

eskbanker

NorthernJoe said:

Unless it's changed recently, FSCS protection is/was up to £50,000 in S&S ISA platforms 

It changed to £85K a year ago: https://www.fscs.org.uk/media/press/2019/apr/higher-protection-limits/

Albermarle

Most providers allow you to hold cash, but they don't segregate it in a Cash ISA, it just sits there in your S&S ISA account until you decide to invest it.

Some of the more traditional ISA providers do not offer a cash holding facility . These are usually ISA's with well known companies that only offer that providers funds , like Legal and General as one example. 

Alexland

Also the robo advisers tend to automatically invest your contributions into ETFs or funds so holding a cash balance really depends on who your ISA manager is and what product you are using.