Peer to Peer ISA Transfer Out

lesley13

Hello Forumites.  I have a Funding Circle Innovative Finance ISA (IFISA).  As FC isn’t re-investing retail funds now this is slowly / very slowly being converted into available money.  I think of this as being cash but other ISA providers see it as a Stocks and Shares ISA. Because of this I am having difficulty finding a cash ISA to transfer it into.   Some providers don’t to take transfers from IFISAs and others don’t want part-transfers.  Has anyone found an ISA with a reasonable rate that will take my money?

Thanks for any help.

eskbanker

Cash ISAs with reasonable rates don't really exist, but if you want to keep the money within the ISA umbrella, could you go via cash, i.e. how much is it and have you used all your 2021/22 allowance?

lesley13

I don’t want to use my 21/22 allowance but will if I have to.  The problem for me is finding a provider that takes a part transfer of an IFISA or even at all.  I could wait until it’s all liquid funds but at the moment it’s earning nothing.  I’m not very happy with Funding Circle.  Other Peer to Peer (Ratesetter and Zopa at least) providers have released funds quickly when they close down.

masonic

You can only transfer a cash balance, loan agreements are not cash and non-transferable. I have done several partial IFISA transfers in the past. If the destination ISA manager does not have a form that recognises IFISAs, then I have ticked either the cash ISA or S&S ISA box and specified a cash amount to transfer. You cannot transfer 2021/22 money unless it is all in cash, as this must be transferred in full.

iWeb (S&S) and TSB (cash) are two providers I have transferred to from an IFISA in the past. I've no reason to think those providers are in any way special, I just happened to have an existing relationship with them.

The Funding Circle IFISA is flexible, so if they are allowing people to make replacement subscriptions, you would be permitted to withdraw and place in an easy access savings account for most of the tax year, before returning for a few days at the end of the tax year to preserve ISA status.

I can't see the attraction of holding this money in a cash ISA over the longer term.

lesley13

Thanks masonic. Yes, I'm trying to transfer the available cash that is gaining no interest now so I can get it all in one pot and then decide on a better future for it!  FC aren't allowing retail investment now so there's no question about putting it back. However your tip about what is possible for a flexible cash ISA is really useful so double thanks. 
I must have been unlucky as I keep being told a IFISA treatment is like a stocks and shares ISA so it's all or nothing. Will have another try tomorrow. L13

masonic

lesley13 said:

I must have been unlucky as I keep being told a IFISA treatment is like a stocks and shares ISA so it's all or nothing. Will have another try tomorrow. L13

A S&S ISA can be partially transferred.

lesley13

Thanks again. I think it must depend on the provider. I was told by someone in Leeds Building Society that they won't. 

masonic

lesley13 said:

Thanks again. I think it must depend on the provider. I was told by someone in Leeds Building Society that they won't. 

Yes, any ISA provider can refuse to accept partial transfers, but most providers do permit them. To get around this, all that needs to be done is to partially transfer to any provider who allows this, then transfer the resultant ISA in full to the provider that does not.

Aceace

You could transfer any cash in your FC IFISA to another IFISA provider that accepts partial transfers, assuming you haven't made any subscriptions to your FC IFISA this tax year. Then transfer the remaining funds when they have finally been released. 

Loanpad might be worth a look. They have a minimum transfer size of £100.