Transferring stock & shares ISA to cash ISA, can i also open another cash ISA

ctokst

Hi,

I'm new and also completely unfamiliar with ISAs, so please be kind.

I have a stock and shares ISA maturing which I want to transfer to a cash ISA, I'm looking at a 2 year fixed cash ISA.  Can I also open another cash ISA (easy access or 1 year) to put this years ISA allocation into? (I'm assuming the stocks and shares ISA transfer to cash will be regarded as old money?)

ColdIron

ctokst said:

I have a stock and shares ISA maturing

Can you expand upon this? S&S ISAs do not usually mature

ctokst

I took out a flexible mortgage ISA 21 years and quickly realized it wouldn't pay off the mortgage at maturity, so I changed to a repayment mortgage. But I kept  the ISA payments going, which also provide some insurance cover (life/illness).  I've now paid off the mortgage and I've now heard from the the insurance company ReAssure that my policy will lapse next month and my ISA matures. I've been asked if I want to continue the stock and shares ISA or if I want to take the money I need to complete a release form.  I don't want to leave it in stocks and shares, but would rather transfer it to a cash ISA.

Beddie

Yes, you can do the transfer and still open and fund a new ISA. 

Just be aware the transfer may take a little while, as ReAssure need to sell the investments before transferring.

ctokst

Beddie said:

Yes, you can do the transfer and still open and fund a new ISA. 

Just be aware the transfer may take a little while, as ReAssure need to sell the investments before transferring.

Many thanks. My intention is to transfer the money in the stocks and shares ISA into a 2 year fixed cash ISA, and then to open another cash ISA (easy access or 1 year fixed term). Does that sound doable?

Albermarle

ctokst said:

Beddie said:

Yes, you can do the transfer and still open and fund a new ISA. 

Just be aware the transfer may take a little while, as ReAssure need to sell the investments before transferring.

Many thanks. My intention is to transfer the money in the stocks and shares ISA into a 2 year fixed cash ISA, and then to open another cash ISA (easy access or 1 year fixed term). Does that sound doable?

Yes this is OK . The rule is that you can only add new money to one cash ISA per tax year.

I'm new and also completely unfamiliar with ISAs

There is a sub forum for ISA's.
If you were to read through this regularly, you would be an expert in no time
ISAs & tax-free savings — MoneySavingExpert Forum

ctokst

Albermarle said:

ctokst said:

Beddie said:

Yes, you can do the transfer and still open and fund a new ISA. 

Just be aware the transfer may take a little while, as ReAssure need to sell the investments before transferring.

Many thanks. My intention is to transfer the money in the stocks and shares ISA into a 2 year fixed cash ISA, and then to open another cash ISA (easy access or 1 year fixed term). Does that sound doable?

Yes this is OK . The rule is that you can only add new money to one cash ISA per tax year.

I'm new and also completely unfamiliar with ISAs

There is a sub forum for ISA's.
If you were to read through this regularly, you would be an expert in no time
ISAs & tax-free savings — MoneySavingExpert Forum

Thank you, much appreciated, and I'll check out the sub-forum too. Thanks.

wiseonesomeofthetime

ctokst said:

I took out a flexible mortgage ISA 21 years and quickly realized it wouldn't pay off the mortgage at maturity, so I changed to a repayment mortgage. But I kept  the ISA payments going, which also provide some insurance cover (life/illness).  I've now paid off the mortgage and I've now heard from the the insurance company ReAssure that my policy will lapse next month and my ISA matures. I've been asked if I want to continue the stock and shares ISA or if I want to take the money I need to complete a release form.  I don't want to leave it in stocks and shares, but would rather transfer it to a cash ISA.

Did you make payments into the S&S ISA during THIS tax year, ie. since April?

ctokst

wiseonesomeofthetime said:

ctokst said:

I took out a flexible mortgage ISA 21 years and quickly realized it wouldn't pay off the mortgage at maturity, so I changed to a repayment mortgage. But I kept  the ISA payments going, which also provide some insurance cover (life/illness).  I've now paid off the mortgage and I've now heard from the the insurance company ReAssure that my policy will lapse next month and my ISA matures. I've been asked if I want to continue the stock and shares ISA or if I want to take the money I need to complete a release form.  I don't want to leave it in stocks and shares, but would rather transfer it to a cash ISA.

Did you make payments into the S&S ISA during THIS tax year, ie. since April?

Yes, £162 / month

eskbanker

ctokst said:

wiseonesomeofthetime said:

ctokst said:

I took out a flexible mortgage ISA 21 years and quickly realized it wouldn't pay off the mortgage at maturity, so I changed to a repayment mortgage. But I kept  the ISA payments going, which also provide some insurance cover (life/illness).  I've now paid off the mortgage and I've now heard from the the insurance company ReAssure that my policy will lapse next month and my ISA matures. I've been asked if I want to continue the stock and shares ISA or if I want to take the money I need to complete a release form.  I don't want to leave it in stocks and shares, but would rather transfer it to a cash ISA.

Did you make payments into the S&S ISA during THIS tax year, ie. since April?

Yes, £162 / month

In which case the advice given above needs to be clarified - all of your current year money (for any ISA type) needs to be in the same place, so if you transfer a S&S ISA (with current year contributions) to a cash one, then you can't fund a different cash ISA in the same tax year, unless both cash ISAs are held with one of the providers who support the concept of portfolio/split ISAs, under which multiple cash ISAs are treated as one:

https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-620297425-5

wiseonesomeofthetime

That's why I asked the question eskbanker.

Glad you picked up on the answer and potential issue 👍