Transfer stocks & shares LISA to a cash LISA

Paizen

Hi all,

Has anybody transferred a stocks & shares LISA into a cash LISA and lived to tell the tale?

Though there's no crystal ball, rising interest rates suggest cash LISA rates may also creep upward. That in turn will make the risk of an S&S LISA seem less appealing, but I don't know how easy a transfer from A to B would be, or if it's even possible at all.

Had a look at a few providers and they document how a cash LISA can be moved to stocks and shares, but not the other way around. I'm assuming it would be virtually the same process, but wondering if anybody has done it?

If Moneybox went up to 4%+ without a 12-month bonus it's something I imagine quite a few folk might consider.

eskbanker

The rule of thumb on here will generally be to use a S&S LISA for long-term retirement money or a cash one for short-term property purchase money, so transferring from one type to the other would be relatively rare, depending on a change of circumstances.  The fact that savings rates are currently relatively attractive (albeit still well below inflation) certainly doesn't signify that they're suitable for long-term money that can't be accessed without penalty until you're 60, so the fundamental question is what are you looking to use a LISA for, and when?

Alexland

If you want a cash-like risk/return profile from your S&S LISA you could always consider investing in a money market fund.

dunstonh

Though there's no crystal ball, rising interest rates suggest cash LISA rates may also creep upward. That in turn will make the risk of an S&S LISA seem less appealing, but I don't know how easy a transfer from A to B would be, or if it's even possible at all.

Not necessarily.    Investment returns are usually broadly similar, net of inflation.     

Every asset class has its day and cash has a good window at the moment as a replacement for fixed interest securities but not for equities.