Full ISA Guide Discussion Area

mickael28

Hello,

Could someone help us to clarify the following 2 doubts please?

1. Can you keep on swapping between Stocks&Shares ISA and Cash ISA once the money has been deposited in one of them for the current year? ie, you open a Stock&Shares ISA and deposit £15K, it stays there for 6 months and then you want to move £10K to a Cash ISA whilst keeping the Stock&Shares ISA opened with £5K, is that possible? or you'll have to move the "whole" amount of £15K in this scenario?

2. I read that if you want to move the contributions of the 'current' year to a different provider you'll have to move the whole amount, but I was wondering, what happens if this year's contributions are mixed up with old contributions on the same account? ie, if you have an ISA account for previous years for £20K and this year you deposit another £5K on the same account. If you want to then move to a different provider, do you need to move the amount contributed just for the current year (£5K, which is ALL that you have contributed this year) or you have to move the complete amount for that account (£25K in this example) as the funds are now mixed up?

Many thanks!!

colsten

You can transfer between S&S and cash in both directions. Current tax year's deposits can only be transferred in their entirety. Existing balances from previous years can be transferred in full or in part. The transfer forms will make that clear.

Not sure why you would want to transfer any money into cash ISAs in the current climate, especially not after you had only been invested for 6 months in the S&S ISA. Can you explain your thinking / requirements?

mickael28

Thanks Colsten,

At the moment we were trying to understand how they work, as we have contributed for the current year to an account that was opened years ago, so as the funds were mixed for this and the previous years were were not sure if what needs to be moved is the whole amount for the complete account, or just the whole amount for the current year (which is a partial amount of the account where it's held).

We'd like to know how it works so that we know what we can do when the time arrives and we think that the S&S money could be better in a Cash ISA for a while.

colsten

It is very simple. If you have deposited £x this year, you must transfer at least £x if you request a transfer.

If you want to turn some of your S&S into cash, you will very likely do a lot better in current accounts than in cash ISAs. If you want to maintain the tax-free wrapper, you are likely to do better if you stay put in the S&S ISA.

mickael28

colsten wrote: »

It is very simple. f you have deposited £x this year, you must transfer at least £x if you request a transfer.

Many thanks, got it now...

Yes, Cash ISA at the moment don't look like the best of the ideas!!

blodleyh24

can you tell me if one can invest in 2 or 3 different types of stocks and share ISAs in one year please? i.e. £5k in Nutmeg ISA, £5k in Neil Woodford and £5k in AN Other.
David Baldwin

Archi_Bald

You can only put new money into 1 S&S ISA each financial year.

If you choose to hold your ISA with one of the many DIY platforms, you can choose from literally thousands of funds, bonds, trusts and shares. You can pick as many or as few of them, as long as they are eligible for ISAs (the platform provider will show whether they are).

If you pick a "packaged" ISA such as Nutmeg, you are stuck with the selection they make for you.

In theory, you could have one "flexible" ISA on a DIY platform, and one 'restricted' ISA like the Nutmeg one. In alternative financial years, you can deposit new money into one or the other of them, but never into both. You would be able to trade with money available inside each of these ISA (e.g. from dividend payments) whenever you like.

In practice, however, investments are about having one balanced portfolio. Nutmeg, for instance, would assume that your entire investment is in the portfolio they construct for you. If you wanted to extend/modify that portfolio, you needed to understand the details, and changes to them, of the Nutmeg portfolio, and construct the added portfolio bits accordingly. If this sounds horrendously complex: that's just what it is. It would be much simpler to construct your own portfolio to start with - or, if you don't know how to do that, ask an IFA to do it for you.

Some thoughts on portfolios: http://monevator.com/category/investing/passive-investing-investing/

Consumerist

Archi_Bald wrote: »

. . . In alternative financial years, you can deposit new money into one or the other of them, but never into both. You would be able to trade with money available inside each of these ISA (e.g. from dividend payments) whenever you like.

Grammar: Shouldn't that be "alternate" ?

bowlhead99

Consumerist wrote: »

Grammar: Shouldn't that be "alternate" ?

You're doing God's work, son...

Consumerist

bowlhead99 wrote: »

You're doing God's work, son...

We all do it from time to time, even if by accident.