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Transfer S&S ISA to Cash ISA (incl. this year's contributions)

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  • badger09
    badger09 Posts: 11,819 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Glad you’ve reached a decision. 
    The tax benefits of ISAs mean that anything accruing inside them is totally free of tax. Obviously, Cash ISA generates interest, whereas S&S ISA can generate both income/dividends & capital growth. 
    The problem is that cash savings, whether inside or outside an ISA, will be reduced by inflation, particularly over the long term. Historically, stock market based investments have beaten cash over the long term. Obviously, that depends on what investments are held, and sometimes the value will drop dramatically. 

    I’m not suggesting this is the best explanation, but the tables & graphs in this article are interesting (no pun intended)

    https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/shares-or-cash-what-you-need-to-know
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