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Feb 2020

Can I Transfer My Stocks and Shares ISA to a Cash ISA?

Can I Transfer My Stocks and Shares ISA to a Cash ISA?

Stocks and Shares ISAs typically offer higher returns than the (very low) current rates offered by Cash ISAs – but there are advantages to moving your money from your Investment ISA to a Cash ISA.

The Case for Cash ISA

While the returns on Stocks and Shares ISAs might look far more attractive than Cash ISAs, there are benefits to Cash ISA accounts.Some of the benefits of a Cash ISA are: 

  1. They’re far lower risk
  2. Some allow you to have access to your cash
  3. No tax on interest returns

And, if you’re saving for a particular purpose (like your first house) some types if ISA like a Lifetime ISA offer incredible returns with minimal risk.

I have a Stocks and Shares ISA. Can I transfer it to a Cash ISA?

Yes! From July 2014, it’s been possible to transfer your money from a Stocks and Shares ISA to a Cash ISA without your funds losing their tax-free status.

There is no limit to the number of times you can do this (but there are limits to the number of ISA accounts you can open each cash year).

How do I transfer my money?

It can be fairly straightforward to move your money from an Investment ISA to a Cash ISA, but there are some complicated things to be considered.

Like all other kinds of ISA transfer, you’ll need to contact the provider you want to transfer to and apply to transfer. They should have a form for you to fill in. You’ll also need to make sure that the provider you are moving from knows. Read our step-by-step guide to transferring your ISA account for a walk-through of the process. 

The thing you must not do is take the money out yourself and then put it into a Cash ISA manually – as this will mean it loses it’s tax free status.

Can I transfer just some of my money?

A partial transfer is possible – this will involve selling some of your investments and then transfering the proceeds of this sale to a Cash ISA.

Some providers will not allow this though, so make sure you talk to your bank to see what can be done. 

Also, the transfer paperwork from your provider might not give you this option – in which case, you’ll need to attach a covering letter which details what you want done.

If your case is pretty complicated with lots of moving parts, make sure you get in contact with your provider and ensure you’re really clear about what you want done to avoid any confusion or mistakes. 

Read more about our best Cash ISA and Investment ISA rates

Lifetime ISAs

Save for your first home and retirement

Compare Lifetime ISAs

Junior ISAs

Invest for your child’s future

Compare Junior ISAs: 

Stocks & Shares ISAs

Invest tax-free in stocks and shares 

Compare Stocks and Shares ISAs:

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