Transferring a Cash ISA to Hargreaves Lansdown Cash ISA

eskbanker

refluxer said:
The downside to having money as cash in a S&S ISA is that it usually earns no interest, so you wouldn't want it there for long.

HL pays interest on uninvested cash in its ISAs:

https://www.hl.co.uk/charges-and-interest-rates

eskbanker

Exactly!

sush40

slicendice said:

sush40 said:

yes, that's what they told me as well when I rang. However, I don't know if this will incur fees (having a temporary S&S ISA with them). I believe it's free, as long as the cash is not converted to funds? 

May be best to direct the question to HL themselves? They would surely have a legal obligation to clarify what charges, if any, would be incurred from going via the S&S ISA?

Also following with interest as I'm looking to transfer my current ISA from T212 as it's dropped to 3.85%.

But I'd also wonder about the risk factor...if you transferred your current ISA to the HL S&S ISA and then, whilst the transfer to the HL Cash ISA was happening (no idea how long that would take?), the markets dipped, you could end up losing a chunk of change. I mean, I know that's always on the cards with any kind of investing, but one of the reasons for holding a cash ISA is that you avoid such risks. 

HL dropping their top rate while transferring my Cash ISA is also one of my concerns, especially since I need to send my request via post (my provider is Tembo and it's not in their list of providers, so i can't do it online). 

refluxer

sush40 said:

HL dropping their top rate while transferring my Cash ISA is also one of my concerns, especially since I need to send my request via post (my provider is Tembo and it's not in their list of providers, so i can't do it online). 

With a reduction in the base rate predicted for the next BoE meeting, it's pretty likely that it'll get a rate reduction at some point - this may not be until after any announcement, but it's not unheard of for providers to drop interest rates in anticipation. 

That said, the current HL/Shawbrook rate is such a good one that if all easy access rates dropped by the same amount, then it may still come out on top once the dust settles.

Rich1976

Looks like that rate is no longer available. Shame as I was thinking of applying for it 

sush40

Rich1976 said:

Looks like that rate is no longer available. Shame as I was thinking of applying for it 

   I filled out the form for the transfer and sent it to the post yesterday   

nomorekids

how do you do this if you've used your ISA allowance, legally you can't even put in a £1 more than your £20,000 allowance?

wmb194

nomorekids said:

how do you do this if you've used your ISA allowance, legally you can't even put in a £1 more than your £20,000 allowance?

Is the Isa you’ve made a deposit to this year flexible? If so you can withdraw a pound from it and put it in a HL or any other Isa.

sush40

nomorekids said:

how do you do this if you've used your ISA allowance, legally you can't even put in a £1 more than your £20,000 allowance?

I haven't used all my allowance for this year, so i was going to transfer my Cash ISA and open a new one with HL after they had transferred from Tembo to their S&S. But the rate has dropped now, so I decided to cancel my application.