Process for transferring a cash ISA to S&S ISA

SMcGill

Hi, I’m hoping someone with knowledge or experience of doing this might be able to help me with a little niggle of worry.

I followed the Vanguard online forms to transfer £50k from my NatWest cash ISA to a LifeStrategy 40 ISA. This wasn’t the ISA I initially expected to choose but that’s a different story. What has unsettled me slightly is that the online process didn’t specify this ISA at any point, it referred generically to s&s ISA even though I started the process from the LifeStrategy 40 web page. 

Is this normal for Vanguard? Once they receive the cash funds will they then expect me to choose which ISA to put them into? Or have I done something stupidly wrong and need to contact them ASAP?!

eskbanker

Transferring into a S&S ISA is a separate activity from deciding what to invest in once the money has arrived, so when you're advised that it's complete, you get to choose exactly which investment(s) you wish to buy.  Important to understand that the ISA itself is a wrapper, within which you hold specific investments, so there's no such thing as a "LifeStrategy 40 ISA"....

SMcGill

Thanks, that’s what I’d hoped to hear. I select the ISA wrapper for the LifeStrategy 40% equity fund when they receive the cash. I had assumed that I’d choose the wrapper at the same time so got a bit thrown.

Albermarle

Normally you open the ISA first and then either select the fund you want your first deposit to go to ,or your deposit arrives in cash into the ISA and then you invest it within the ISA as you wish . The method can vary depending on the ISA provider. 
It sounds like you have gone about it the other way around but should be OK.