Stocks ISA to Cash ISA

shmike

I have a Stocks and Shares ISA worth £80k, and another fixed term cash ISA worth £21k that is maturing next week.

I would like to transfer them both to an easy access cash ISA, that pays interest monthly and use the monthly interest for everyday use. I can also add £20k new money at the same time.

I estimate the interest would be around £500 a month. (approx 5% interest).
I am paying £500 fees a year for the Stocks ISA, and am seeing poor performance for this.

I am retired, so there seems little point keeping the Stocks ISA any longer.

Anyone know which ISA provider will do this?

eskbanker

If your criteria are easy access, allowing transfers from both cash and S&S, and paying interest monthly, then you can put these into the likes of Moneyfacts to narrow down the list of options:

https://moneyfactscompare.co.uk/isa/easy-access-cash-isas/?quick-links-first=false&id=null&business-type=16&activity-type=null&investment-amount=20000&investment-type=4&account-types=64&interest-paid-frequencies=2&terms=null&account-opening-methods=null&account-management-methods=null&notice-periods=1&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2

shmike

Thanks. I was wondering if someone has done / is doing this and can offer any tips or experiences to the thread?

Albermarle

shmike said:

Thanks. I was wondering if someone has done / is doing this and can offer any tips or experiences to the thread?

Yes lots of people, it should be a relatively simple exercise. 
Open easy access cash ISA.
Request transfer of S&S ISA
Request transfer of old cash ISA
S&S ISA provider will sell your investments to cash and transfer the money to the new cash ISA.
Add £20K of new money.

Just check the T's & C's of the new ISA that they will accept transfers of S&S ISA in ( most will) 

Occasionally transfers can get delayed to poor admin, wrong details etc and might need chasing up, but most will happen within 3 weeks.

and another fixed term cash ISA worth £21k that is maturing next week.

Have you informed this provider which option you want when it matures ( they should have given you a few options) ?

shmike

'Have you informed this provider which option you want when it matures ( they should have given you a few options) ?'

No I haven't told them yet.

I'll only covered up to £85k if I move it all into the same pot. More to consider.

Albermarle

shmike said:

'Have you informed this provider which option you want when it matures ( they should have given you a few options) ?'

No I haven't told them yet.

I'll only covered up to £85k if I move it all into the same pot. More to consider.

If you do not tell the provider which option you want, then they will have a default option.
This is often an easy access account with a low rate of interest.
However some providers will roll it over into a new fixed savings account, like the one it is maturing from. In this case you will be unable to transfer it out.

Strongly suggest you tell them that you want it to move to an easy access account on maturity, to make sure you will have no issues transferring it out later.

shmike

Albermarle said:

shmike said:

'Have you informed this provider which option you want when it matures ( they should have given you a few options) ?'

No I haven't told them yet.

I'll only covered up to £85k if I move it all into the same pot. More to consider.

If you do not tell the provider which option you want, then they will have a default option.
This is often an easy access account with a low rate of interest.
However some providers will roll it over into a new fixed savings account, like the one it is maturing from. In this case you will be unable to transfer it out.

Strongly suggest you tell them that you want it to move to an easy access account on maturity, to make sure you will have no issues transferring it out later.

I assume you mean an easy access ISA?

Its Shawbrook and they have one at 4.5%. If I reinvest it to that I can add the new money £20k to it if I wanted to, correct?

Thinking about, I think if I transfer my S&S ISA  into a new cash ISA (£80k), then add the new money to the reinvested one above I will be fully covered in both.

Albermarle

shmike said:

Albermarle said:

shmike said:

'Have you informed this provider which option you want when it matures ( they should have given you a few options) ?'

No I haven't told them yet.

I'll only covered up to £85k if I move it all into the same pot. More to consider.

If you do not tell the provider which option you want, then they will have a default option.
This is often an easy access account with a low rate of interest.
However some providers will roll it over into a new fixed savings account, like the one it is maturing from. In this case you will be unable to transfer it out.

Strongly suggest you tell them that you want it to move to an easy access account on maturity, to make sure you will have no issues transferring it out later.

I assume you mean an easy access ISA? YES

Its Shawbrook and they have one at 4.5%. If I reinvest it to that I can add the new money £20k to it if I wanted to, correct? YES

Thinking about, I think if I transfer my S&S ISA  into a new cash ISA (£80k), then add the new money to the reinvested one above I will be fully covered in both.

Correct for the last statement as well.