Transferring cash from S&S to (new) cash isa 10 October 2021 at 7:12PM in ISAs & tax-free savings 8 replies 231 views

7sefton

I currently have all my savings invested in a Stocks & Shares isa with Interactive Investor. I do not have a cash isa account and have used up all my allowance this year. 

As my savings are for a house deposit, I want to start de-risking by gradually moving out of stocks and into cash. I could just keep the cash in Interactive Investor at 0% interest, but would like to earn whatever I can on the cash in the meantime.

Can I transfer cash from II into a new cash isa? If so, how? (I’m conscious it might be difficult as I would need to open the new cash isa with £0 because I’ve used my allowance this year)

soulsaver

You open a cash isa with your chosen provider that accepts transfers in and you fill in their transfer form. 

If you don't pay tax on savings, you don't need it in an ISA, and can just withdraw it to any account of your choice.

Albermarle

You can earn up to £1000 in interest per tax year , tax free if you are a basic rate taxpayer.

So if you are unlikely to get close to that then you could be better off in a non ISA savings account , as their interest rates tend to be a bit better .

Hansplace

another way is to put into a FTSE100 tracker fund inside stock and share isa.
Average 4% return from dividen and you can dispose and cash out anytime

eskbanker

Hansplace said:

another way is to put into a FTSE100 tracker fund inside stock and share isa.
Average 4% return from dividen and you can dispose and cash out anytime

Doesn't fit the clearly-stated criteria - dividend yield is no consolation if capital value drops significantly:

7sefton said:

As my savings are for a house deposit, I want to start de-risking by gradually moving out of stocks and into cash.

george4064

Hansplace said:

another way is to put into a FTSE100 tracker fund inside stock and share isa.
Average 4% return from dividen and you can dispose and cash out anytime

Literally the worst thing the OP could do right now.

jimjames

Hansplace said:

another way is to put into a FTSE100 tracker fund inside stock and share isa.
Average 4% return from dividen and you can dispose and cash out anytime

The risk of a single, poorly diversified index probably outweighs any benefit. You might be able to cash out but it's not much use if the index has dropped 50%

grumiofoundation

Hansplace said:

another way is to put into a FTSE100 tracker fund inside stock and share isa.
Average 4% return from dividen and you can dispose and cash out anytime

You are right you can cash out your investment anytime, and as long as we ignore the huge gaping flaw in your suggestion that run the risk of not being able to cash out the same amount you put in, it's a great idea that clearly shows you both read and understood what the OP was asking. 

tebbins

Obviously picking a single country equity tracker, for a house deposit, is very insensible. That said it's far from the worst thing the OP could do, the Church of Scientology are accepting donations.