Transfer of S+S ISA into multiple Cash ISAs

ResponsibleInvestor

I have invested in S+S ISAs since their inception and have a reasonable fund.  I have decided to buy a house.  As I need all of the proceeds in a few month's time, I cannot risk a market crash that may occur with the volatile leaders across the pond.  So I have sold all of the shares and they sit in Cash within the S+S ISA wrapper at my fund managers.

The interest rates there are poor so I need to move the funds to Cash ISAs.  The recommended maximum in each provider is £85,000 so I will need to transfer to multiple new providers.  The money will be transferred from the S+S ISA to the Cash ISA using the transfer process.

Is it OK to transfer up to 85K to each new Cash ISA despite the fact that I have already invested the full £20k into a new S+S ISA this year?

The transfer fund asks whether I have invested into an ISA this year and this makes me concerned that they would turn around and say the transfer is not possible.
Please can someone clarify the situation for me?
Thank-you.

Alexland

Proper ISA transfers don't count as contributions so you should be fine but have you checked that your existing S&S ISA provider supports partial transfers-out?

Of course if you wanted a better cash-like return in the S&S ISA wrapper with minimal risk you could just invest in a money market fund which holds short duration high quality bonds.
https://www.vanguardinvestor.co.uk/investing-explained/what-are-money-market-funds

ResponsibleInvestor

Thanks for the suggestion Alexland, I will look into it.
I have checked my current broker and they are happy to partial transfer.

sausage_time

Alexland said:

Proper ISA transfers don't count as contributions so you should be fine but have you checked that your existing S&S ISA provider supports partial transfers-out?

Of course if you wanted a better cash-like return in the S&S ISA wrapper with minimal risk you could just invest in a money market fund which holds short duration high quality bonds.
https://www.vanguardinvestor.co.uk/investing-explained/what-are-money-market-funds

And if they don't support partial transfers you can always stage via an ISA provider that does.  Transfer the lot there, the farm out to wherever you plan to move the funds.  You may exceed £85k for a short while of course.

eskbanker

ResponsibleInvestor said:

I have decided to buy a house.  As I need all of the proceeds in a few month's time, I cannot risk a market crash that may occur with the volatile leaders across the pond

[...]

The recommended maximum in each provider is £85,000 so I will need to transfer to multiple new providers.  

sausage_time said:
You may exceed £85k for a short while of course.

Perhaps worth bearing in mind that the FSCS temporary high balances provision protects balances of up to £1m for up to six months for certain life events, including buying a new main residence:

Qualifying life events and evidence required

Certain life events could have caused a temporary high balance in your bank account, including:

• Real estate transactions (property purchase, sale proceeds, equity release. This doesn't have to be a UK property but must relate to your main residence).

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

Dorian1958

I am in a very similar position to the OP (buying a house and needing to use my S&S ISA in the near future), and had not considered the notion of a money market fund as an alternative to selling my HSBC All World Index fund and transferring out to an alternative cash ISA provider. IWeb don't provide interest on cash held in their S&S ISA. However, IWeb  dont appear to offer the money market funds offered by Vanguard, as flagged up by Alexland.  Are there any other money market funds I could consider as a short term holding (up to 3 months?).  I would rather just stay with IWeb.  Thanks.

Alexland

Dorian1958 said:

IHowever, IWeb  dont appear to offer the money market funds offered by Vanguard, as flagged up by Alexland.

I use the Royal London fund on iWeb not without some risk but it's a lot less spicy than your All-World fund. 
ROYAL LONDON BD FD RL SHT TERM MONEY MKT Y ACC  (RLCBTY)
You may still prefer the certainty and accessibility of a cash account.

Qyburn

Dorian1958 said:

 IWeb  dont appear to offer the money market funds offered by Vanguard, as flagged up by Alexland.  Are there any other money market funds I could consider as a short term holding (up to 3 months?).  I would rather just stay with IWeb.  Thanks.

"Royal London Short Term Money Market Y Acc" 
https://www.markets.iweb-sharedealing.co.uk/funds-centre/fund-supermarket/detail/GB00B8XYYQ86

They have a Vanguard short term in "inc" form which I guess you wouldn't want.

Dorian1958

Thank you Alexland and Qyburn, exactly the sort of information I was after and on which I can do my own research.