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Fidelity Cash Fund ISA

Invest in a Fidelity Cash Fund ISA in 2022

Investment ISAs put your capital at risk & you may get back less than you originally invested

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK.
  • Invest From: £25 pm

Stocks & Shares ISA

from Nutmeg

Allows ISA Transfers
  • Fund Choice: Nutmeg offer 4 diversified portfolios with ETFs, using technology to keep charges low.
  • Invest From: Min. £500 single

Share Dealing ISA

from Hargreaves Lansdown

Allows ISA Transfers
  • Trade From (frequent trader rate): £5.95 per trade - 20 trades + pm
  • Trade From (standard trader rate): £11.95 per trade

Investment ISA

from Barclays Smart Investor

Allows ISA Transfers
Regular Savings
  • Fund Choice: Invest in shares, funds, investment trusts, exchange traded funds. 5 Ready made portfolios if you are not sure where to invest. Capital at risk.
  • Invest From: £1 pm

Share Dealing ISA

from IG

Allows ISA Transfers
  • Trade From (frequent trader rate): £3.00
  • Trade From (standard trader rate): £8.00

Share Dealing ISA

from Interactive Investor

Allows ISA Transfers
  • Trade From (frequent trader rate): £7.99 (Investor Plan: Flat fee of £9.99pm with one free trade)

Stocks & Shares ISA

from InvestEngine

Allows ISA Transfers
Regular Savings
  • Fund Choice: Offering commission-free DIY investing or low-cost, professionally managed income or growth portfolios built for you
  • Invest From: £100

Share Dealing ISA

from AJ Bell

Allows ISA Transfers
  • Trade From (frequent trader rate): £4.95
  • Trade From (standard trader rate): £9.95

Stocks & Shares ISA

from Willis Owen

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose from a wide range of funds, shares, investment trusts and ETFs. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
  • Invest From: £25

Stocks & Shares ISA

from Moneyfarm

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose your risk profile and have it matched to an investment portfolio expertly built and managed.
  • Invest From: £1,500

Stocks & Shares ISA

from Wealthify

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose your risk profile and have an investment Plan built and managed for you.
  • Invest From: £1

What is a Fidelity Cash Fund ISA?

A Fidelity Cash Fund ISA is a Stocks and Shares ISA that invests in the Fidelity Cash Fund.

Despite it being a cash invested fund, it isn’t the same as a Cash ISA. A Cash ISA is a different type of ISA entirely, and just gives you a fixed or variable rate of interest on your cash balance.

What is a Stocks and Shares ISA?

A Stocks and Share ISA is a tax-free investment account in which you can buy shares, funds and other investments.

ISA accounts are free from the following taxes:

  1. Income Tax – this is normally paid on dividends from your investment if it’s not held in an ISA
  2. Capital Gains Tax (CGT) – this is normally paid on the growth of your investment’s value when you sell it if it’s not held in an ISA

What is the Fidelity Cash Fund?

The Fidelity Cash Fund is a managed fund (specifically a unit trust) that invests solely in cash and cash equivalent products.

Cash investments are low risk compared to investment funds and shares because they can’t fluctuate greatly in value. Instead, they provide a fixed or variable rate of interest to investors.

The Fidelity Cash Fund pools its investors’ money together to invest in approximately 40 different cash products and holdings at any one time.

What does the Fidelity Cash Fund invest in?

The Fidelity Cash Fund invests in many different money market and cash instruments such as bank deposits and short-dated gilts.

The fund aims to grow in value through the interest it receives from its cash investments, offering three main benefits to investors:

  1. A competitive rate of interest
  2. A low level of investment risk and high security
  3. More liquidity than a fixed rate Cash ISA

As you can trade the cash fund within a Stocks and Shares ISA, it’s an attractive alternative to a fixed rate Cash ISA that usually locks you in for multiple years, during which time you can’t make withdrawals.

With a Fidelity Cash Fund ISA, however, you can withdraw at any time once you have sold your holding in the fund, and you can sell online through your Stocks and Shares ISA provider’s online platform.

How do I Open a Fidelity Cash Fund ISA?

  1. First, you need to choose a Stocks and Shares ISA provider that offers the Fidelity Cash fund via their platform (to compare ISA providers, look at charges, investment options, customer service ratings etc.)
  2. Then, open your ISA online through your provider’s website.
  3. Or, you can do this over the phone or via a postal application if you prefer.
  4. You’ll need your National Insurance number and some basic personal information to open your account.
  5. And you’ll need your debit card to add money to your ISA once it’s set up.
  6. You can then buy Fidelity Cash Fund units with the money in your Stocks and Shares ISA.
  7. If the value of the fund increases, your holding will rise in value, and you can sell and withdraw your investment at any time.

Can I transfer an existing ISA into a Fidelity Cash Fund ISA?

Yes, you can transfer an existing Stocks and Shares ISA or Cash ISA to an ISA platform and invest in the Fidelity Cash Fund.

To do this:

  1. Complete your new ISA provider’s Stocks and Shares ISA transfer form
  2. Return it to your provider
  3. They’ll complete your transfer which will take 4-6 weeks
  4. When it completes, you can invest your ISA money into the Fidelity Cash Fund.

Remember: check with your existing provider if you’ll be charged for transferring out and weigh up the costs before you transfer. 

Sam Hodgson
Edited by Sam Hodgson - ISA.co.uk

Frequently Asked Questions

No. You can switch providers with an ISA transfer if you wish. You can also contribute to other ISA providers in separate tax years.

ISA accounts are authorised and regulated by the Financial Conduct Authority (FCA). This means that all ISA providers are covered by the Financial Services Compensation Scheme (FSCS) for up to £85,000 if they go out of business.

Please note that this may not apply to the underlying holdings within a Stocks and Shares ISA, and will not cover standard investment losses. 

No, ISA stands for Individual Savings Account and must be solely owned for tax purposes.

You can withdraw money at any time from your Stocks and Shares ISA.

You will be charged an annual management charge from your investment ISA provider, and you may also need to pay ad hoc administration and dealing charges.

The funds you invest in may also charge an annual fee. 

You can withdraw online, by phone or by post. You will need to sell your investments first and you may be charged a dealing fee to do this.

Most ISA withdrawals will complete in approximately five working days, but they could take longer depending on the assets you need to sell.

The annual ISA allowance is set by HMRC each year, and the current limit is £20,000 per person for the 2021/22 tax year.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.