Transfer of stocks and shares isa to new cash isa

pernes

Hi, I would like to transfer an existing stocks and shares isa to a new cash isa, information I have found notes that some providers won’t accept that. Can anyone advise me please if this is correct or providers that will accept? Or wIll I have to cash in the stocks and shares isa to access the money and then reinvest?

Thanks in advance 

gravel_2

From where to where?

masonic

Almost all cash ISAs that accept transfers will accept transfers from S&S ISAs. If yours doesn't then an intermediate transfer to any which does would solve the problem. In this case, opt for one of the major banks who will have the most robust systems.

dunstonh

 I have found notes that some providers won’t accept that.

Where did you find those "notes"?   (they are wrong)

Or wIll I have to cash in the stocks and shares isa to access the money and then reinvest?

Your terminology may be the cause of the problem.

Some S&S providers will ask you to sell the investments to cash before you transfer.  However, most will sell them to cash for you.
You are not reinvesting as you are using a cash ISA.  You don't invest in a cash ISA.

Reed_Richards

dunstonh said:

You are not reinvesting as you are using a cash ISA.  You don't invest in a cash ISA.

This board enforces strict rules on terminology.  Putting money in a savings account, be it an ISA or otherwise, is "Saving".  Putting money into stocks and shares, in an ISA or otherwise, is "Investing". 

Putting money into bonds is presumably also "investing" unless you choose UK Government bonds ("Gilts") which might be classed as "saving".  In that case you might suffer a penalty if you cash them in before they reach their full term, but then the same is true of a fixed rate savings account.

Also, a poor choice of the stocks and shares you hold in your ISA could become more akin to "gambling" than "investing".     

Albermarle

Reed_Richards said:

dunstonh said:

You are not reinvesting as you are using a cash ISA.  You don't invest in a cash ISA.

This board enforces strict rules on terminology.  Putting money in a savings account, be it an ISA or otherwise, is "Saving".  Putting money into stocks and shares, in an ISA or otherwise, is "Investing". 

Putting money into bonds is presumably also "investing" unless you choose UK Government bonds ("Gilts") which might be classed as "saving".  In that case you might suffer a penalty if you cash them in before they reach their full term, but then the same is true of a fixed rate savings account.

Also, a poor choice of the stocks and shares you hold in your ISA could become more akin to "gambling" than "investing".     

Regarding terminology, investing in Govt Gilts is not the same as Saving. Anybody holding gilts over the last couple of years will have seen their value plummet. 

'Bonds' is a tricky one as fixed rate savings accounts are referred to as bonds by some savings provider.
Also 'Bonds' are a favourite of fraudsters partly due to this ambiguity.

masonic

Albermarle said:

Reed_Richards said:

dunstonh said:

You are not reinvesting as you are using a cash ISA.  You don't invest in a cash ISA.

This board enforces strict rules on terminology.  Putting money in a savings account, be it an ISA or otherwise, is "Saving".  Putting money into stocks and shares, in an ISA or otherwise, is "Investing". 

Putting money into bonds is presumably also "investing" unless you choose UK Government bonds ("Gilts") which might be classed as "saving".  In that case you might suffer a penalty if you cash them in before they reach their full term, but then the same is true of a fixed rate savings account.

Also, a poor choice of the stocks and shares you hold in your ISA could become more akin to "gambling" than "investing".     

Regarding terminology, investing in Govt Gilts is not the same as Saving. Anybody holding gilts over the last couple of years will have seen their value plummet.

Investing in individual gilts at very low yield is rather the same as saving into fixed term savings accounts at very low rates. As highlighted by Reed, there is an access option for gilts that doesn't exist for fixed term savings, but does that make a gilt of an equivalent term and YTM more or less risky? I'd lean towards less. Of course we do not have 10+ year fixes in the current savings market, but if we did, taking one of these out a couple of years ago at a little over 1% AER would be equally damaging to one's wealth.