Transferring Cash ISA into S&S Isa

Cunnymitzoo · 14 January 2021 at 3:02PM

I have a Cash Isa from previous tax years ,now earning vitually nothing. I have not used any of my allowance for the current tax year,therefore know i could open a S&S Isa ,my question is could i also transfer some of my existing Cash Isa ,and open 2 further S&S Isas ? Was thinking of transferring £10000 from my Cash Isa and putting £5000 into Moneyfarm and Wealthsimple .Can i do this,is it allowed ?
Any help ,advice appreciated

Albermarle · 14 January 2021 at 3:26PM

Yes that is OK . If you were to add any new money as well, you could only add to one of the new S&S ISA's
If you will have some savings remaining it is quite possible you do not need to use a cash ISA. A basic rate taxpayer can earn up to £1000 interest pa without paying any tax so cash ISA's are redundant for most people and non ISA savings account pay a bit more interest usually.

jeetster · 16 January 2021 at 2:08PM

You are allowed to transfer only part of it, but your current cash Isa provider and your new s&s provider may not support partial transfer. I’ve had this problem. It’s a pain!. If opening a s&s isa watch out for exit transfer fees. I got caught by this with BMO who charge £50 to exit. Also given interest is so low have a flutter on Premium Bonds for a year and see how it goes!