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