Vanguard LS ISA

madlyn

I opened a Vanguard LS ISA 60/40, my initial deposit was £500, a couple of months later I added another £150 to the fund, or so I thought.
Having had a closer look, the dashboard shows my LS fund and underneath it shows cash with the £150 I added at a later date, I'm guessing this was not added to my fund and is just sat there not doing much?
There is also an 'invest' tab at the side of the cash line. I didn't do anything but when selected it shows I can select an amount from the cash to invest into various funds. If I select £50 say and a fund, does this mean that any profit made on the chosen fund will not be in the ISA wrapper?
I know I should have looked into this more at the time of opening, but the money was a gift from a relative and I wanted to do something worthwhile with it.

Exodi

There is no issue with holding cash in a S&S ISA, it's not uncommon at all.

Anything in your ISA account will have tax-free status, including funds you bought with cash in the ISA.

Unless you opened a non-ISA account and put the cash in the wrong account (which is unlikely as you wouldn't be able to directly use it to buy investments), then there is no issue. You're overthinking it.

Janie2008

It will be in your isa its just that when you pay in cash you have to click on invest and choose  a fund.  You didn't realise this so it just sat as cash. 

madlyn

Exodi said:

There is no issue with holding cash in a S&S ISA, it's not uncommon at all.

Anything in your ISA account will have tax-free status, including funds you bought with cash in the ISA.

Unless you opened a non-ISA account and put the cash in the wrong account (which is unlikely as you wouldn't be able to directly use it to buy investments), then there is no issue. You're overthinking it.

I was just curious as if I click on the LS fund it shows its performance, but the cash shows nothing apart from when it was deposited.
I distinctly remember selecting the fund when I added more cash at a later date, maybe there was something I should have done to add it to the actual fund.
I think I'll use a small amount of the cash to invest in one of the funds on offer.

Exodi

madlyn said:

Exodi said:

There is no issue with holding cash in a S&S ISA, it's not uncommon at all.

Anything in your ISA account will have tax-free status, including funds you bought with cash in the ISA.

Unless you opened a non-ISA account and put the cash in the wrong account (which is unlikely as you wouldn't be able to directly use it to buy investments), then there is no issue. You're overthinking it.

I was just curious as if I click on the LS fund it shows its performance, but the cash shows nothing apart from when it was deposited.
I distinctly remember selecting the fund when I added more cash at a later date, maybe there was something I should have done to add it to the actual fund.
I think I'll use a small amount of the cash to invest in one of the funds on offer.

Again, I wouldn't overthink this.

Either Vanguards website suffered a back-end error which (unfortunately for you, but fortunately for everyone else) only affected you out of the half a million other Vanguard investors in the UK or an inexperienced new investor did not submit their instruction correctly. With respect, if I was a betting man I know which my money would be on.

In either case, you can just invest in the fund now and within a day or two your money will be invested. Looking at VGLS60A you've potentially lost out on 1.5% growth on £150 over the two months, so about £2.25 - probably not worth worrying about. In the meantime, I believe Vanguard will pay interest on the cash balance, so it might even be closer to half that.

No reason to deliberately hold cash on the account (some people like to save a small amount for the quarterly fees, in your case it's a literally a few quid), personally I'd just invest it all.

madlyn

Either Vanguards website suffered a back-end error which (unfortunately for you, but fortunately for everyone else) only affected you out of the half a million other Vanguard investors in the UK or an inexperienced new investor did not submit their instruction correctly. With respect, if I was a betting man I know which my money would be on.

I definitely fall into the latter category, and as you say the loss is not worth worrying about.

Easyjet77

Vanguard pays interest on cash held within an ISA or PENSION AC.  The cash is " doing something". Phone or message Vanguard and they will fully explain the procedure re investing etc.

jimjames

madlyn said:

Exodi said:

There is no issue with holding cash in a S&S ISA, it's not uncommon at all.

Anything in your ISA account will have tax-free status, including funds you bought with cash in the ISA.

Unless you opened a non-ISA account and put the cash in the wrong account (which is unlikely as you wouldn't be able to directly use it to buy investments), then there is no issue. You're overthinking it.

I was just curious as if I click on the LS fund it shows its performance, but the cash shows nothing apart from when it was deposited.
I distinctly remember selecting the fund when I added more cash at a later date, maybe there was something I should have done to add it to the actual fund.
I think I'll use a small amount of the cash to invest in one of the funds on offer.

You should see the amount of cash in the account is different from what you deposited because it's earning interest. Not a lot of difference but it should have additional money added as interest each month.

Out of interest if you originally planned to put it all in a fund why are you now only planning to use a small amount to do that?

madlyn

jimjames said:

madlyn said:

Exodi said:

There is no issue with holding cash in a S&S ISA, it's not uncommon at all.

Anything in your ISA account will have tax-free status, including funds you bought with cash in the ISA.

Unless you opened a non-ISA account and put the cash in the wrong account (which is unlikely as you wouldn't be able to directly use it to buy investments), then there is no issue. You're overthinking it.

I was just curious as if I click on the LS fund it shows its performance, but the cash shows nothing apart from when it was deposited.
I distinctly remember selecting the fund when I added more cash at a later date, maybe there was something I should have done to add it to the actual fund.
I think I'll use a small amount of the cash to invest in one of the funds on offer.

You should see the amount of cash in the account is different from what you deposited because it's earning interest. Not a lot of difference but it should have additional money added as interest each month.

Out of interest if you originally planned to put it all in a fund why are you now only planning to use a small amount to do that?

I don't want to use the full amount incase I mess up again.

Swipe

madlyn said:

jimjames said:

madlyn said:

Exodi said:

There is no issue with holding cash in a S&S ISA, it's not uncommon at all.

Anything in your ISA account will have tax-free status, including funds you bought with cash in the ISA.

Unless you opened a non-ISA account and put the cash in the wrong account (which is unlikely as you wouldn't be able to directly use it to buy investments), then there is no issue. You're overthinking it.

I was just curious as if I click on the LS fund it shows its performance, but the cash shows nothing apart from when it was deposited.
I distinctly remember selecting the fund when I added more cash at a later date, maybe there was something I should have done to add it to the actual fund.
I think I'll use a small amount of the cash to invest in one of the funds on offer.

You should see the amount of cash in the account is different from what you deposited because it's earning interest. Not a lot of difference but it should have additional money added as interest each month.

Out of interest if you originally planned to put it all in a fund why are you now only planning to use a small amount to do that?

I don't want to use the full amount incase I mess up again.

Not sure how you can mess it up, but if you do, just cancel the transaction. If you want to add to the same fund, just right click and top up and you can't get it wrong.