Query re transfer from non flexible cash isa to stocks and shares isa

Philip624

I have £20k in a tembo cash isa full allowance for the year that is non flexible. Can I withdraw monthly in order to drip feed into a new stocks and shares is with a different provider?

Catplan

No if you withdraw you can’t put it back into an ISA of any type this year, you would request a transfer.

Not sure why you want to drip feed either, am I missing something?

slinger2

The only way to drip feed from one ISA to another is to do lots of partial transfers, which would a nightmare.

clairec666

Catplan said:

No if you withdraw you can’t put it back into an ISA of any type this year, you would request a transfer.

Not sure why you want to drip feed either, am I missing something?

Some people like to drip feed their S&S ISAs as a way of minimising risk if there are big fluctuations in share prices. Not entirely sure I agree with the maths behind it.

To answer the original question, no, you can't deposit any more money into an ISA this year if you've used the full £20k allowance. Even if the Tembo ISA was flexible, you still wouldn't be able to deposit into the S&S - money withdrawn from a flexible ISA has to be repaid into the same ISA it was withdrawn from.

Beddie

Transfer it all to a S&S ISA.

If you want to drip feed into investments that's fine - hold it as cash (if they pay a decent rate) or in a STMM fund, such as 

https://www.trustnet.com/factsheets/O/gwuo/royal-london-short-term-money-market/

and invest as you see fit.

masonic

clairec666 said:

Some people like to drip feed their S&S ISAs as a way of minimising risk if there are big fluctuations in share prices. Not entirely sure I agree with the maths behind it.

The maths suggests when backtested it gives a worse outcome about two thirds of the time.