Problem transferring ISA

ss2020jd

Apologies for the long post but I’d be very grateful if anyone could help with my confusion. After leaving some cash in a very poor paying Intelligent Finance cash ISA for over a decade I’m now waking up and trying to make sense of the ever-confusing (to me) world of cash and stocks and shares ISAs so any help or guidance would be much appreciated.

Basically, I had a very old, small stocks and shares ISA originally with Legal & General which was taken over by Fidelity. I haven’t been able to make any contributions due to financial restraints but it remained there untouched for over a decade. I also had the Intelligent Finance cash ISA (again started in better times) but never added to it once opened. When I realised what a poor interest rate I was getting from IF I opted to transfer the cash ISA across to Fidelity. I recently found out that although it had been transferred to Fidelity it was sitting as ‘cash’ and hadn’t actually been invested. Anyway, along come the new higher rates so I thought I won’t invest the cash part into Fidelity, I will just transfer it to a new cash ISA. 

I submitted all the forms and the new ISA provider had no response from Fidelity and asked me to chase up. When I did, I was told by Fidelity that I couldn’t just transfer the cash part of it I would have to sell the stocks and shares part making it cash and then ask the new provider to transfer across to the cash ISA with them. When I relayed this to the new provider they told me they can only transfer from a cash ISA account they cannot transfer from a stocks and shares ISA into a cash ISA. I’m very confused. I read a thread on here about transferring a stocks and shares ISA to a cash ISA. Is there anyway to extract/transfer cash like this to a cash ISA or will it just need to be invested into the existing Stocks and shares ISA. The part I want to transfer was originally from a cash ISA and that hasn’t changed. It is under the £20,000 annual limit, in any case. I’m aware if I transfer it into a normal account it will lose its ISA status. 

Thank you if you read all the way through and in advance of any replies.

eskbanker

The ISA rules allow S&S ISAs to be transferred to cash ISAs, but individual cash ISA providers may choose not to permit this, at a company or product level - who are you looking to transfer to?

Likewise, partial ISA transfers are permitted by the rules but may not be supported by individual providers....

ss2020jd

Thank you so much @eskbanker. That makes sense. I should have checked the small print. I didn’t realise it could be an issue. 

I was looking to transfer to Secure Trust bank which was a best buy on here before Christmas. So I suppose I’ll just have to find a provider that does allow this or stay put with Fidelity. 

eskbanker

STB ISA info does say:

When you apply, you can transfer in existing Cash ISA savings from another provider - these savings can be from the current tax year or previous tax years. Stocks and Shares ISA transfers are not accepted.

so if you want to use them then you'd need to transfer via someone else's cash ISA first.

You might still have an issue separating cash and investments within your Fidelity S&S ISA for a partial transfer though, so check that out....

xylophone

Are you saying that Fidelity will not permit a partial transfer of just the cash in the ISA?

You will have to sell the shares/ funds so that all you have is a cash sum?

You are content to do this?

If so, it is just a case of finding a Cash ISA provider to accept the transfer.

Example transfer to YBS

https://www.ybs.co.uk/savings/isa-transfer-forms

ss2020jd

eskbanker said:

STB ISA info does say:

When you apply, you can transfer in existing Cash ISA savings from another provider - these savings can be from the current tax year or previous tax years. Stocks and Shares ISA transfers are not accepted

so if you want to use them then you'd need to transfer via someone else's cash ISA first.

You might still have an issue separating cash and investments within your Fidelity S&S ISA for a partial transfer though, so check that out....

Oops, I feel silly for completely missing that and for thinking that it was counted as cash. A steep learning curve! Thanks so much for finding and pointing that out. 

I think I will have an issue with the transfer. Fidelity say I have to sell the S&S part to enable any transfer so I will need to do my homework this time and try to make sure I understand what I am doing. 

ss2020jd

xylophone said:

Are you saying that Fidelity will not permit a partial transfer of just the cash in the ISA?

Yes.

You will have to sell the shares/ funds so that all you have is a cash sum?

Yes, that is correct.

You are content to do this?

I’m not sure yet.

If so, it is just a case of finding a Cash ISA provider to accept the transfer.

Example transfer to YBS

https://www.ybs.co.uk/savings/isa-transfer-forms

Thank you very much @xylophone. I have answered in bold above as well. 

It looks like I have some thinking to do. I appreciate the link. Will have a look at that. 

MiserlyMartin

I transferred out of Fidelity S&S ISA to Coventry, it went through in under a week. You usually need to fill out a transfer form on paper so you can sign it. Depending on what you have invested in , now could be a good time to sell out. Fidelity won't transfer out partially, so transfer it all.

It really is easy to sell into cash on the Fidelity site

ss2020jd

MiserlyMartin said:

I transferred out of Fidelity S&S ISA to Coventry, it went through in under a week. You usually need to fill out a transfer form on paper so you can sign it. Depending on what you have invested in , now could be a good time to sell out. Fidelity won't transfer out partially, so transfer it all.

It really is easy to sell into cash on the Fidelity site

Thank you very much, that’s good to know.