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Cash in a self-select ISA

GarraGee
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Cash in a self-select ISA

#263393

Postby GarraGee » November 10th, 2019, 9:12 pm

I have some cash in a SS ISA as a result of sales and accumulated dividends.

I want to move part of it to an existing cash ISA with another provider to maintain the ISA benefits.

The staff at both providers seem a little vague re the process.

Can anyone advise?

Many thanks.

GG

mc2fool
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Re: Cash in a self-select ISA

#263401

Postby mc2fool » November 10th, 2019, 9:55 pm

It's a "pull" process. You have to get a form from the cash ISA provider which you fill in with the details of your SS ISA and return to the cash ISA provider. They will then "pull" the funds from the SS ISA.

If you specify who your cash ISA is with then possibly others with experience of doing that with them might pop up and offer advice.

GoSeigen
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Re: Cash in a self-select ISA

#263433

Postby GoSeigen » November 11th, 2019, 8:17 am

mc2fool wrote:It's a "pull" process. You have to get a form from the cash ISA provider which you fill in with the details of your SS ISA and return to the cash ISA provider. They will then "pull" the funds from the SS ISA.




... and you then often wait for a month for the transfer to happen and perhaps get charged hefty fees too.

If the amount to be transferred is small and you don't fully use your ISA allowances every year it can often be easier to simply transfer out the cash to your bank, then back into the cash ISA.


GS

GarraGee
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Re: Cash in a self-select ISA

#263455

Postby GarraGee » November 11th, 2019, 10:15 am

mc2fool wrote:It's a "pull" process. You have to get a form from the cash ISA provider which you fill in with the details of your SS ISA and return to the cash ISA provider. They will then "pull" the funds from the SS ISA.

If you specify who your cash ISA is with then possibly others with experience of doing that with them might pop up and offer advice.


Thanks. The Cash ISA is with Coventry Building Society and the stocks/shares are with Saga Share Dealing.

GG

GarraGee
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Re: Cash in a self-select ISA

#263457

Postby GarraGee » November 11th, 2019, 10:20 am

GoSeigen wrote:
mc2fool wrote:It's a "pull" process. You have to get a form from the cash ISA provider which you fill in with the details of your SS ISA and return to the cash ISA provider. They will then "pull" the funds from the SS ISA.




... and you then often wait for a month for the transfer to happen and perhaps get charged hefty fees too.

If the amount to be transferred is small and you don't fully use your ISA allowances every year it can often be easier to simply transfer out the cash to your bank, then back into the cash ISA.


GS

Thanks.Forgive my ignorance, but how would the out/in transfers help?

Geoff

Itsallaguess
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Re: Cash in a self-select ISA

#263459

Postby Itsallaguess » November 11th, 2019, 10:31 am

GarraGee wrote:
GoSeigen wrote:
mc2fool wrote:
It's a "pull" process. You have to get a form from the cash ISA provider which you fill in with the details of your SS ISA and return to the cash ISA provider. They will then "pull" the funds from the SS ISA.



... and you then often wait for a month for the transfer to happen and perhaps get charged hefty fees too.

If the amount to be transferred is small and you don't fully use your ISA allowances every year it can often be easier to simply transfer out the cash to your bank, then back into the cash ISA.


Thanks.

Forgive my ignorance, but how would the out/in transfers help?


I think the idea is that transferring cash out of your Self-Select Shares ISA and into your bank account, and also then transferring that cash from your bank account into your Cash ISA would normally not involve any 'people-processes' that would definitely need to be carried out if you were to use the 'pull' process, and filling out transfer forms that would then need manual-intervention to process, as well as a likely longer time-frame.

Where GS is asking regarding your planned usage of your ISA allowance is that if you've used your full allowance, or were planning to do so outside of this cash transfer, then removing cash completely from the Shares-ISA and putting it back outside of the tax-wrapper and into your bank-account, and then transferring that cash back inside the tax-wrapper of your Cash ISA would use some additional allowance up.

If you think it's unlikely that you're going to need your full ISA allowance, and this cash-transfer to your bank and then back into the Cash ISA would not take you over any allowance limit, then the time saved doing it that way might be something you perhaps consider worthwhile.

With the above said, I'd maybe expect a form-based transfer process to take around 3 or 4 weeks at the most, so if you're not in a rush to get the money into the Cash ISA, then perhaps leaving it within the tax-wrapper and using a form-based transfer might be preferable - it's your choice really, based on the above options with slightly different advantages and disadvantages, depending on your ISA allowance situation really..

Cheers,

Itsallaguess

GarraGee
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Re: Cash in a self-select ISA

#263464

Postby GarraGee » November 11th, 2019, 11:19 am

Thanks again. I'm due to speak with Coventry BS later this week.

Depending on the time scale they are offering, I will probably do the transfer outside the ISA rules.

By the by, it's good to read postings from "Fools" who were around in the TMF days.

Cheers.

GG

mc2fool
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Re: Cash in a self-select ISA

#263472

Postby mc2fool » November 11th, 2019, 11:44 am

GarraGee wrote:Depending on the time scale they are offering, I will probably do the transfer outside the ISA rules.

They will, almost certainly, say that it depends on how quickly Saga Share Dealing do their end. Passing the buck is standard practice with ISA transfers., ;)

Note the rules say: https://www.gov.uk/individual-savings-accounts/transferring-your-isa

ISA transfers should take no longer than:

15 working days for transfers between cash ISAs
30 calendar days for other types of transfer

Alaric
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Re: Cash in a self-select ISA

#263474

Postby Alaric » November 11th, 2019, 11:49 am

mc2fool wrote:15 working days for transfers between cash ISAs


You wonder what on earth they do to justify stringing it out so long. Given that it should be little more than transferring from one bank account to other, why should it take longer than 15 minutes?

pochisoldi
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Re: Cash in a self-select ISA

#263506

Postby pochisoldi » November 11th, 2019, 2:31 pm

Alaric wrote:
mc2fool wrote:15 working days for transfers between cash ISAs


You wonder what on earth they do to justify stringing it out so long. Given that it should be little more than transferring from one bank account to other, why should it take longer than 15 minutes?


In my experience, cash to cash ISA transfers take around a week.

"Cash" to "Stocks and shares" takes a variable period - Legal and General are absolutely crap - three separate transfers from the same cash ISA to L&G took different times to transfer, one took around 6 weeks...


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