Flexi cash to S&S Isa

Smellycatlayla

Looking for advice on whether this is possible. 

I have £20k to invest now in this years ISA and was going to invest a lump sum now. Over the rest of the tax year I want to use this ISA to drip feed into a S&S ISA. Is this possible? From what I’ve explored it looks like most cash Isas need a linked account and that is the only account funds can be transferred into - usually your main bank account. I don’t want to have to complete partial transfer requests every month - ideally I just want a SO or DD direct to the S&S ISA. I would only have £20k invested in total for the year - the cash fund will reduce as it drip feeds to S&S. 

masonic

If you put £20k into a cash ISA then you would not be able to pay any new money into a S&S ISA, including anything you withdraw from the cash ISA. Any money flexibly withdrawn must now be returned to the same ISA it was taken from. You might be able to request a partial transfer from the cash ISA to the S&S ISA, but most providers still do not permit partial transfers of current year money.

A much easier option would be to invest directly in the S&S ISA and buy a short-term money market fund to enable you to drip feed into your desired investments, or use a non-ISA savings account.

slinger2

Worth reading a recent thread: https://forums.moneysavingexpert.com/discussion/6526354/flexible-isas-current-year-subscriptions-can-no-longer-be-replaced-in-a-different-isa

The gist is that under new rules introduced on 6 April 2024 withdrawals from flexible ISAs can only be replaced in the ISA they came from. As such what you want is no longer possible.