Transfer future money from Cash ISA to a Vanguard S&S ISA

Yorkshire_money

Hi,

I recently started the process of transferring a portion of my cash ISA, to a Vanguard S&S ISA. In the future l intended to transfer more money from my cash ISA, to my Vanguard account.

I have spoken with a Vanguard fund manager. Apparently once my Vanguard account is set up. It is not a straight forward process, to transfer a further amount from my Cash ISA, directly to my S&S ISA. He did try and explain but l was not entirely clear why l couldn't. 

I can make payments from my current account. But l wouldn't want to take the money out of my cash ISA, as it would lose it's ISA protection. 

Once my Vanguard S&S ISA is set up. How do l transfer any further money from my Cash ISA to my S&S ISA?

Thank you. 

Dazed_and_C0nfused

Which provider is the Cash ISA with?

Yorkshire_money

Dazed_and_C0nfused said:

Which provider is the Cash ISA with?

Lloyds Bank. I intended to leave enough in my cash ISA, at a 12 month fixed interest rate. Then in 12 months, l would transfer that interest payment, over to my S&S ISA. Possibly repeating the process in the future.

Mark_d

I think the issue is because most providers don't support partial transfers.

Personally I would transfer the entire cash ISA into a S&S ISA. I only have S&S ISAs.

ISAs are most beneficial when you have a good amount of money invested for the long term.  A cash ISA protects your 5% interest from tax.  A S&S ISA protects a long term average 10% (my estimate) rate of return from tax.

Some people consider S&S ISAs as risky but I would say you choose your level of risk.  I would also point out that cash ISAs are also risky to an extent if you're measuring your return against the rate of inflation.

Yorkshire_money

Mark_d said:

I think the issue is because most providers don't support partial transfers.

Personally I would transfer the entire cash ISA into a S&S ISA. I only have S&S ISAs.

ISAs are most beneficial when you have a good amount of money invested for the long term.  A cash ISA protects your 5% interest from tax.  A S&S ISA protects a long term average 10% (my estimate) rate of return from tax.

Some people consider S&S ISAs as risky but I would say you choose your level of risk.  I would also point out that cash ISAs are also risky to an extent if you're measuring your return against the rate of inflation.

Thank you for your reply. I have enough of a lump sum that l can invest, and am comfortable with putting into S&S ISA, which will hopefully grow over time.

I wouldn’t put the whole lump sum into S&S. Especially when l can, currently, get a decent fixed interest rate.

GeoffTF

You can open another cash ISA with another bank. If you Lloyds allows partial transfers, you can transfer part of your money to your new ISA. You can then transfer your whole Lloyds cash ISA to Vanguard. If Lloyds does not allow partial transfers, you can transfer your whole Lloyds ISA to another bank that does.