Transfer out of Vanguard S&S ISA into a cash savings account? 7 December 2022 at 9:36AM edited 20 January at 2:34PM in Savings & investments 8 replies 736 views

anxiousnow

I've got a small amount (£2500) in a Vanguard S&S ISA and have noticed the recent reduction in interest which obviously I'd expect due to market volatility. I put it in there a few years ago when cash ISA rates were low and am now wondering whether I'd be better off transferring the money into a 3 or 4 per cent interest account.

I'm 41, have a separate (not Vanguard!) S&S Lifetime ISA (for retirement) and private pensions, so feel like I currently have a fair amount in S&S/investments which could be volatile in the current climate. So far have been telling myself to ride the storm and wait and not even check the Vanguard account because investments are long term etc etc.

Are there any fees for transferring an S&S ISA out of Vanguard?

[edited because I confused everyone with putting an L in front of ISA - sorry!]

dunstonh

I've got a small amount (£2500) in a Vanguard S&S ISA and have noticed the recent reduction in interest which obviously I'd expect due to market volatility.

There is no reduction in interest.  Indeed, the yield on the interest paying elements have gone up.

I put it in there a few years ago when cash ISA rates were low and am now wondering whether I'd be better off transferring the money into a 3 or 4 per cent interest account.

Investing is for the long term.  In a typical five year period you will get one negative year, one nothing year and three positive years.   You need the timescale to average out the ups and downs.

I'm 41. have an S&S Lifetime ISA (for retirement) and private pensions, so feel like I currently have a fair amount in S&S/investments which could be volatile in the current climate.

Current climate is no different to any other cycle when it comes to investing.

So far have been telling myself to ride the storm and wait and not even check the Vanguard account because investments are long term etc etc.

That is correct.   Plus, they have been rising by more than cash savings over the last 6 weeks.

Are there any fees for transferring an S&S LISA out of Vanguard?

No.

Albermarle

Are there any fees for transferring an S&S LISA out of Vanguard?

Is this an error, I did not think Vanguard even offered a LISA?

jimjames

anxiousnow said:

Are there any fees for transferring an S&S LISA out of Vanguard?

For £2.5k you don't even need to transfer it out, just close it and withdraw, then pay into the savings account. But as above you need to consider what the purpose is. Do you have other cash savings as an emergency fund?

eskbanker

anxiousnow said:

Are there any fees for transferring an S&S LISA out of Vanguard?

As above, it's questionable whether you actually have a S&S LISA with Vanguard, but, just to be clear, you can only transfer from one Lifetime ISA to another LISA without penalty, i.e. if you wanted to transfer from a LISA to a different type of ISA, that incurs a 25% penalty.

daveyjp

As above there's confusing terminology in the first post.  Is it a LISA or a ISA?

S&S ISAs don't pay interest, they pay returns, which do go up and down monthly.

It is important not to look at the now as falls always look worse than rises.   Look at the whole period you have held the fund and the cumulative effect of the monthly changes. There will be falls and rises, but I have experienced far more rises than falls and the returns are well in excess of what I would have earned by sticking the money in savings accounts.

If you have time to continue investing in the S&S ISA it is very likely the general long term historic trend will continue into the future. I.e an overall rise.

anxiousnow

Whoops yes that's my mistake, have corrected the original post. It's a Stocks and Shares ISA, without the L.

As above there's confusing terminology in the first post.  Is it a LISA or a ISA?

S&S ISAs don't pay interest, they pay returns, which do go up and down monthly.

It is important not to look at the now as falls always look worse than rises.   Look at the whole period you have held the fund and the cumulative effect of the monthly changes. There will be falls and rises, but I have experienced far more rises than falls and the returns are well in excess of what I would have earned by sticking the money in savings accounts.

If you have time to continue investing in the S&S ISA it is very likely the general long term historic trend will continue into the future. I.e an overall rise.

eskbanker said:

anxiousnow said:

Are there any fees for transferring an S&S LISA out of Vanguard?

As above, it's questionable whether you actually have a S&S LISA with Vanguard, but, just to be clear, you can only transfer from one Lifetime ISA to another LISA without penalty, i.e. if you wanted to transfer from a LISA to a different type of ISA, that incurs a 25% penalty.

Albermarle said:

Are there any fees for transferring an S&S LISA out of Vanguard?

Is this an error, I did not think Vanguard even offered a LISA?

jacko74

How long should it normally take for funds to hit my bank account when withdrawing/transferring from an investment fund?

I withdrew a portion of my Fundsmith holding (T Class Acc) 11 days ago now but my full original investment figure is still visible  and the withdrawal transaction is still only showing as ''pending'' when I log in to my Fundsmith account

eskbanker

jacko74 said:

How long should it normally take for funds to hit my bank account when withdrawing/transferring from an investment fund?

I withdrew a portion of my Fundsmith holding (T Class Acc) 11 days ago now but my full original investment figure is still visible  and the withdrawal transaction is still only showing as ''pending'' when I log in to my Fundsmith account

As your issue relates to a different process for a different investment on a different platform, I'd suggest that posting on (or starting) another thread would be better than piggy-backing onto this one....