Process of transferring from S&S ISA to cash ISA

Wobble101

As the title says, I am going to transfer my holdings from an S&S ISA to a cash one. I understand from the literature that this can take up to a month. 

My question is about whether I should convert my S&S into cash (within the ISA wrapper) first or whether this is best done at some later point in the process (with this being something I have no control over). 

Obviously I have no special awareness of what’s going to happen to world markets  (I wish!) but I’m wondering whether I’m best off selling now rather than keeping them invested and then something happening in the next few weeks that then has a detrimental effect on the value of my holdings - just because that is the random time that my transfer goes through.

What I’m suggesting might not even be possible but, assuming it is, I’m interested in how others have managed this. 

In case it’s relevant, I’d either be transferring from ii or Vanguard, to Trading212. 

Thanks! 

masonic

It works the same as a transfer between two cash ISAs, although the investments need to be sold first. If you do this, then you remove the risk of making a loss as you wait, but may lose out on a gain. The process is likely to be slightly quicker if you sell first. I wouldn't expect it to take longer than a couple of weeks when no sales are needed as part of the transfer process.

FrugaiMacDugal

If you're happy with any profit made and price now, turn into cash, then transfer.

If transferring to a new provider, let them initiate transfer so as not to loser ISA protection.

Alexland

I'd rather sell at a price I accept than at a random price in the future which might lock in a loss.

If you leave the money invested it's just more work for Vanguard's overworked transfer team to do arranging a sale and they might even come to check with you if the holdings should be sold which would further delay things.

eskbanker

Wobble101 said:

In case it’s relevant, I’d either be transferring from ii or Vanguard, to Trading212. 

You could always sell your existing holding(s) at a time/price of your choosing and buy into a short term money market fund instead while waiting for the transfer to happen?

singhini

@Wobble101
Ring the S&S ISA company and double check how long cash held inside a S&S ISA takes to transfer. The reason i say this is because i opened a cash ISA recently with West Brom BS by going into the local branch and opening it "in-branch" by depositing a personal cheque and also filling in the paperwork to transfer in some money from my S&S ISA with Vanguard. The Vanguard funds were already held as cash (i had already sold the investments weeks earlier).
Anyhow, the Cash Isa with West Brom states that all monies need to be within the ISA within 14 days but unfortunately Vanguard never sent them the money within 14 days (So West Brom sent me a cheque which ment that money now was outside of the ISA wrapper). 

Wobble101

@singhini Thanks, I’d not thought of that. I can’t see a time cut off point on Trading121’s website so fingers crossed …

Wobble101

@Alexland Exactly - ditto! 

Wobble101

An update on this - I sold all the ii shares as suggested here so the ISA was just cash and the whole thing went through in 5 days!

FrugaiMacDugal

That's good 5 days, and all hassle free.