Transfer OUT of a vanguard s+s isa

Mick70

Hi

have funds in a Vanguard stocks shares Isa and likely need access to it all next year for house deposit, so cant afford to see it suddenly fall. On goggling this it sounds like they can drag their heels for isa transfers

Aparently it can take six weeks to transfer to a cash isa provider ? in which case it would be exposed to risk , am i better off just selling it and cashing in now if going to need this money ?

thanks for any replies

mick

eskbanker

Not sure there's any need to countenance an ISA transfer - why don't you simply sell the funds within the ISA and buy something low-risk like a short term money market fund (still within the S&S ISA), which is close to cash in terms of volatility and loss risk, and then just sell and withdraw when you need it?

Albermarle

Sounds like you need to cash your investments in this ISA asap. You could just leave the cash in there, or you would get a better rate currently by transferring to a cash ISA paying good rates.

Ayr_Rage

If you don't plan on an in specie transfer, just sell the funds, leave them in the Vanguard ISA as a cash balance and then initiate the transfer with your chosen new cash ISA provider.

Simple.

Mick70

ah so when you sell (not done it before) , it just sits in vanguard as "cash" earning very little interest , so it is still in the ISA wrapper just not earning much if anything . if so that might be best option. Six week to do transfer seems crazy nowadays

Mick70

thanks replies BTW

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81987356#Comment_81987356

The cash interest rate offered in S&S ISAs varies quite a lot, but I believe Vanguards is around 2%, which is on the low side.

Last year? Vanguard introduced a minimum fee, which prompted quite a lot of users to transfer out, and probably caused a backlog. The guidelines are maximum 30 days to transfer out of an S&S ISA, but should be quicker in cash.

Crag30

I transferred out of Vanguard for similar reasons before Christmas, and was quite surprised it only took about 10 days after what I had read of other peoples experiences.