Is it ok to park funds in cash ISA, then transfer into S&S ISA from 6th April?

jackhulk

Hello
I have a large sum I wish to place into S&S ISA but undecided yet which S&S ISA to go for. So as to make use of this current year allowance, can I move money into an old cash ISA I still have active and then transfer funds in new tax year into new S&S ISA?
Thank you

masonic

Yes, but do make sure your chosen cash ISA provider will accept your money as 2020/21 subscriptions as you are leaving it quite late.

soulsaver

jackhulk said:

Hello
I have a large sum I wish to place into S&S ISA but undecided yet which S&S ISA to go for. So as to make use of this current year allowance, can I move money into an old cash ISA I still have active and then transfer funds in new tax year into new S&S ISA?
Thank you

If you mean you haven't decided which shares you want, you can open a S&S Isa, pay your funds up to £20k today, and leave it as cash until you've decided which shares to buy, at your leisure. You don't have to choose your investments immediately.

Eco_Miser

In principle yes, but you may have already passed the cut-off date for new contributions to your cash ISA.

However many S&S ISA platforms (IWEB for certain) will accept contributions by debit card up to 11:59 on the 5th April.  Don't leave it that late though.

jackhulk

I just wanted to double check it was ok to use old cash ISA in this way to park funds, and then transfer to new S&S ISA in new tax year. My money is already in the current account (Nationwide) where I also hold the old cash ISA (Nationwide), so transfer from current account to ISA will be instant.
masonic said:

Yes, but do make sure your chosen cash ISA provider will accept your money as 2020/21 subscriptions as you are leaving it quite late.

Eco_Miser said:

In principle yes, but you may have already passed the cut-off date for new contributions to your cash ISA.

However many S&S ISA platforms (IWEB for certain) will accept contributions by debit card up to 11:59 on the 5th April.  Don't leave it that late though.

This is off concern now though. As I can transfer instantly from current account to old cash ISA, surely this will be accepted as 2020/21 subscription?

masonic

jackhulk said:

I just wanted to double check it was ok to use old cash ISA in this way to park funds, and then transfer to new S&S ISA in new tax year. My money is already in the current account (Nationwide) where I also hold the old cash ISA (Nationwide), so transfer from current account to ISA will be instant.
masonic said:

Yes, but do make sure your chosen cash ISA provider will accept your money as 2020/21 subscriptions as you are leaving it quite late.

Eco_Miser said:

In principle yes, but you may have already passed the cut-off date for new contributions to your cash ISA.

However many S&S ISA platforms (IWEB for certain) will accept contributions by debit card up to 11:59 on the 5th April.  Don't leave it that late though.

This is off concern now though. As I can transfer instantly from current account to old cash ISA, surely this will be accepted as 2020/21 subscription?

An internal transfer will probably be fine, whereas a faster payment could take until the next working day to be credited if you were unlucky. It does depend on how Nationwide deal with transactions made on a non-working day though (for example if they forward date them as some banks do).

jackhulk

Thanks all. Just completed transfer, it was instant and all looks good.