Set up S&S ISA before year end and transfer next tax year

modelreject

Hi. I had similar query in another thread. This is specific to my wife’s find though.

she has used up £16000 of 23/24 allowance in fixed ISA with Nationwide. Wanting to move to Virgin fixed in 24/25 tax year where she will be maxing that out. Can she open a S&S ISA, with Virgin before 23/24 tax year end, fund it with £4000 left over allowance then transfer to the fixed after April 6th?

Also, first time setting up S&S ISA. Can you leave cash sitting there without choosing investments?

Thsnks

masonic

Yes this would be fine, and leaving cash uninvested is generally ok. No doubt she will want to fund it nearer to the end of the tax year so as not to miss out on the interest earning potential of the cash, so it shouldn't be sitting around for long.

Ayr_Rage

Not all ISAs accept transfers in, so choose the product carefully.

friolento

Are you / is your wife sure a Virgin S&S ISA is her best choice? It’s a while since I looked at them but they were rather expensive and inflexible, and had a mediocre track record regards growth. 

May be ask on the ISA board for current views on Virgin’s S&S ISA. 

modelreject

It is nofriolento said:

Are you / is your wife sure a Virgin S&S ISA is her best choice? It’s a while since I looked at them but they were rather expensive and inflexible, and had a mediocre track record regards growth. 

May be ask on the ISA board for current views on Virgin’s S&S ISA. 

It's not going to be in S&S in new tax year. It is going to be in their fixed rate ISA at 5.25%

badger09

modelreject said:

Hi. I had similar query in another thread. This is specific to my wife’s find though.

she has used up £16000 of 23/24 allowance in fixed ISA with Nationwide. Wanting to move to Virgin fixed in 24/25 tax year where she will be maxing that out. Can she open a S&S ISA, with Virgin before 23/24 tax year end, fund it with £4000 left over allowance then transfer to the fixed after April 6th?

Also, first time setting up S&S ISA. Can you leave cash sitting there without choosing investments?

Thsnks

As your wife’s cash ISA is with Nationwide, the simplest solution would be to open a Nationwide Tripple Access Online ISA @ 4.25% & pay in her £4k immediately.

Then when she’s ready, xfer both. 

Nationwide is one of a handful of providers which allow ‘portfolio’ or ‘split’ ISAs. 

4.25% is more than she’ll get in any S&S ISA😉

InvesterJones

badger09 said:

modelreject said:

Hi. I had similar query in another thread. This is specific to my wife’s find though.

she has used up £16000 of 23/24 allowance in fixed ISA with Nationwide. Wanting to move to Virgin fixed in 24/25 tax year where she will be maxing that out. Can she open a S&S ISA, with Virgin before 23/24 tax year end, fund it with £4000 left over allowance then transfer to the fixed after April 6th?

Also, first time setting up S&S ISA. Can you leave cash sitting there without choosing investments?

Thsnks

As your wife’s cash ISA is with Nationwide, the simplest solution would be to open a Nationwide Tripple Access Online ISA @ 4.25% & pay in her £4k immediately.

Then when she’s ready, xfer both. 

Nationwide is one of a handful of providers which allow ‘portfolio’ or ‘split’ ISAs. 

4.25% is more than she’ll get in any S&S ISA😉

True, though most people would use a cash trust/short term money market fund as a high liquidity investment to get 5% or so returns currently within a S&S ISA while holding temporary funds.

friolento

modelreject said:

It is nofriolento said:

Are you / is your wife sure a Virgin S&S ISA is her best choice? It’s a while since I looked at them but they were rather expensive and inflexible, and had a mediocre track record regards growth. 

May be ask on the ISA board for current views on Virgin’s S&S ISA. 

It's not going to be in S&S in new tax year. It is going to be in their fixed rate ISA at 5.25%

Oh right. Seems I was misled by the thread title and what you posted initially. No issues with the Virgin cash ISA.

friolento

badger09 said:  

4.25% is more than she’ll get in any S&S ISA😉

My S&S ISA grew by well over 4.25% last year. Though by the nature of S&S, the growth is not guaranteed, and S&S isn’t the right choice for everyone every time.

There are still cash ISAs that pay more than 4.25%. Zopa, amongst others.

EthicsGradient

friolento said:

badger09 said:  

4.25% is more than she’ll get in any S&S ISA😉

My S&S ISA grew by well over 4.25% last year. Though by the nature of S&S, the growth is not guaranteed, and S&S isn’t the right choice for everyone every time.

There are still cash ISAs that pay more than 4.25%. Zopa, amongst others.

There are, but in this tax year, you can only fund cash ISAs with one provider - so paying again in to a cash ISA this year is limited for the OP's wife to Nationwide or not at all. Nationwide confirms that it allows two different cash ISAs since they form a "portfolio":

You can only open one of each type of ISA within a tax year. So one cash ISA and one stocks and shares ISA.

However, when you open a cash ISA product with us, it'll form part of a portfolio cash ISA.

This means you can split your cash ISA across multiple products. So you can open more than one cash ISA product with us in a tax year.

For example, you could start the tax year by opening a fixed rate ISA with us. Then, choose at the end of the year to open a limited access cash ISA with us. Both accounts become part of one single portfolio cash ISA.

Although you can pay money into your individual ISA products, you'll only be paying into one portfolio cash ISA.

What is an ISA? | ISAs explained | Nationwide

From the tax year starting April 6th 2024, you will be able to fund cash ISAs with more than one provider in a tax year: https://moneytothemasses.com/saving-for-your-future/investing/can-i-invest-into-more-than-one-isa

friolento

Yes I know all that.