Flexible Stock & Shares Isa - Vanguard

Hal17

Can I please request any thoughts on the following action, not sure of any negatives as I have never done this before?

I want to open a new Cash ISA with Coventry BS as one of their loyal customers. I do not have £20K currently available, but will have these funds available in September. I am thinking of taking £20K from my flexible Vanguard S&S ISA to fund this new cash ISA and then put £20K back into the S&S ISA in September.

Is there anything I should be aware of, like the difference in sell and buy values of the affected funds. Many thanks.

Albermarle

Is there anything I should be aware of, like the difference in sell and buy values of the affected funds.

Well if you sell £20K of investment funds today and buy them back in September, they will no doubt be a different price and could be higher or lower.

If they are lower you will have made a good decision. If they are higher you will have made a bad decision.

It is probably simpler and  less risky to just fund  the cash ISA in September.

jimjames

Hal17 said:

Is there anything I should be aware of, like the difference in sell and buy values of the affected funds. Many thanks.

Why do you want to do that, can you explain as I can't see the rationale? September is in the same tax year as now so exactly the same allowance is available then. You'll be taking a risk being out of the market for 6 months

Hal17

Thank you both for your prompt replies. I realised I had not really thought it through!

I have always been a cash ISA saver and about 3 years ago moved them all to a Vanguard S&S ISA. The current loyalty cash ISA that Coventry are offering is 4.4% fixed until 31st May 2024 and I think it will be withdrawn in the near future. I am keen to get back into saving in cash ISA's going forward. 

As Albermarle indicated it might make sense to wait until September and see what the best cash ISA offering is at that point and make the decision to invest from other cash investments.

I was looking to take £20K out for both myself and my wife, so a value of £40K in total. Perhaps having that amount out of the market for 6 months might not be the best decision to make. Thanks again for the valid inputs.  

Beddie

Hal17 said:

I was looking to take £20K out for both myself and my wife, so a value of £40K in total. Perhaps having that amount out of the market for 6 months might not be the best decision to make. Thanks again for the valid inputs.  

Or... it might be a great idea if markets fall, but you won't know that until later. If the fixed rate appeals, but you're not sure, maybe do £20k, not £40k, to keep a foot in both camps.

There's no wrong answer, as we cannot predict the future, so go with what feels right for you.

Albermarle

I have always been a cash ISA saver and about 3 years ago moved them all to a Vanguard S&S ISA. The current loyalty cash ISA that Coventry are offering is 4.4% fixed until 31st May 2024 and I think it will be withdrawn in the near future. I am keen to get back into saving in cash ISA's going forward.

Obviously we do not know you or your financial situation, but generally it is not a good idea to keep changing direction, unless there is a very good reason to do so.

Cash ISA to S&S ISA back to cash ISA for example.

Probably better to decide on a % mix of the two and stick to that.

Hal17

Thanks Albermarle that is a very valid input thank you. I had already decided to do a % mix as you suggested. I will keep the full value within the S&S ISA currently and open a new cash ISA in September when my other funds become available. Thanks for all the replies, it has been helpful to rethink what I was trying to achieve.