Transfer Cash ISA To Stocks And Shares ISA

Transfer Cash ISA To Stocks And Shares ISA

Transferring your Cash ISA to a Stocks and Shares ISA can be done without it affecting your current annual ISA allowance, as long as you don’t withdraw the money yourself and instead follow the correct transfer procedure. The current ISA allowance is £20,000 and your total amount can be split between cash, stocks and shares and innovative finance ISAs.

Why Use a Stocks and Shares ISA?

This is becoming a popular option at a time when interest rates on ISAs and current accounts are at an all-time low. However, if this is an option you’re considering then it’s worth noting the associated risks with opening this kind of ISA.

In your Cash ISA, your money is safe and is guaranteed to incur some form of interest. However, this is not the case with Stocks and Shares ISAs. Unlike cash ISA transfers, stocks and shares ISA transfers aren't just about chasing a better return.

Funds are an easy way to begin investing or simply widening your investment horizons. Alternatively, investors who are willing to take greater risks may see better returns on their savings or see in an increase in their disposable income by buying shares in high earning companies. 

Being aware of the Risks as well as the Rewards

1. The value of investments and the income they provide can go down as well as up and you might not get back what you originally invested. You cannot cut out all risk, but you can find a balance. Just make sure you have a stable financial situation before investing
2. It’s also worth bearing in mind that if you need to access your money in the short term, a full return of capital from any investment cannot be guaranteed and there may be cost implications to sell the investments

Is it Easy to Transfer?

The transfer process has become much simpler and transferring from a cash ISA to a stocks and shares ISA is no different from the transfer process between Cash ISAs. It simply involves a form to fill in from your new provider and they take care of the rest.

Before attempting to transfer, make sure your new ISA has no restrictions on deposits minimums and takes in transfers. Transfers can take between 15-30 days.