Transferring from Stocks and Shares ISA

Catbells

I'd like to transfer £20k from Fidelity Stocks and Shares ISA into a cash ISA.  Is this straightforward to do?  And any suggestions as to which cash ISA is the best.  I already have one with Yorkshire Building Society and one with Skipton which I could add to but not sure if they will do this from S&S ISA.  Thanks.

eskbanker

Any cash ISA provider accepting transfers should allow them from S&S ISAs - it's largely the same process, i.e. filling in a form with the receiving provider and letting them take care of it.  'Best' cash ISA will really depend on what you're looking for - best buy tables on here and elsewhere will show you the leading interest rates, but you may be looking for local branches, or customer service reputation, or something else?

mebu60

Be aware that Fidelity doesn't permit partial transfers out.

Catbells

mebu60 said:

Be aware that Fidelity doesn't permit partial transfers out.

So this means I'd have to take the lot out at the same time?  I thought if you were transferring from an existing ISA into another ISA then then you wouldn't be using your allowance up since its was already invested in an ISA.  I hope I"ve understood this correctly.  If so,  the remaining money in my Fidelity ISAs would surely be subject to same rule and would I be able to invest my total portfolio with Fidelity in cash ISAs without breaking the rules on the £20k  annual limit for ISAs.

Catbells

Thanks eskbanker.  Apart from high interest rate and a reputable organisation I'm not too bothered so long as they are  clear about what they're offering.  It's my savings fund and can leave most of it in for a couple of years.  I'll have a look at the best cash ISA table you mentioned too. 

masonic

Catbells said:

mebu60 said:

Be aware that Fidelity doesn't permit partial transfers out.

So this means I'd have to take the lot out at the same time?  I thought if you were transferring from an existing ISA into another ISA then then you wouldn't be using your allowance up since its was already invested in an ISA.  I hope I"ve understood this correctly.  If so,  the remaining money in my Fidelity ISAs would surely be subject to same rule and would I be able to invest my total portfolio with Fidelity in cash ISAs without breaking the rules on the £20k  annual limit for ISAs.

Partial transfers are optional. Both providers that are party to a partial transfer must allow it, otherwise it cannot go ahead. Fidelity can require you to either transfer the lot or stay put. It is not uncommon for S&S ISA providers not to support partial transfers, though a few do.

Alternatively, you could buy a money market fund with your £20k, which would give you a cash-like holding with interest close to 5%.

Doctor_Who

Catbells said:

mebu60 said:

Be aware that Fidelity doesn't permit partial transfers out.

So this means I'd have to take the lot out at the same time?  I thought if you were transferring from an existing ISA into another ISA then then you wouldn't be using your allowance up since its was already invested in an ISA.  I hope I"ve understood this correctly.  If so,  the remaining money in my Fidelity ISAs would surely be subject to same rule and would I be able to invest my total portfolio with Fidelity in cash ISAs without breaking the rules on the £20k  annual limit for ISAs.

You would have to transfer the whole S&SISA value to a cash ISA since Fidelity don't allow partial transfers-out. The transfer would not affect your ISA allowance (obviously if you have subscribed to the S&SISA this tax year this forms part of this year's allowance). 

Catbells

Thanks all.  I think it would be wise to transfer to multiple providers - spread the risk.  Is this the right idea?

Catbells

Masonic - what is the best money market fund to go for?  At 5% interest it's an attractive option.

badger09

Catbells said:

Thanks all.  I think it would be wise to transfer to multiple providers - spread the risk.  Is this the right idea?

If you have more than £85k in your S&S ISA, then it’s sensible to split it so you retain FSCS protection. 

However, it sounds as though you only want to transfer part to cash ISA & retain some in S&S. 
In which case, you would have to first xfer everything to another S&S platform, which does allow partial xfers out, then from there, xfer some to a Cash ISA. 

Albermarle

Catbells said:

Masonic - what is the best money market fund to go for?  At 5% interest it's an attractive option.

A recent thread that might be of interest.
Thinking about investing in a Money Market Fund — MoneySavingExpert Forum