Transferring a Cash ISA to a Stocks & Shares ISA
As interest rates remain low, investing for income has become an ever growing trend for savers and there is an increased temptation to look towards the stock market.
transfer any money you’ve built up in a Cash ISA into a Stocks &Shares ISA if you’re prepared to take the risks associated with investing in the stock market. You can transfer the money saved in your cash ISA without affecting your current annual ISA allowance, as its already within the ISA wrapper, albeit it being the cash variety (NB you must not withdraw the money and invest it in your Stocks & Shares ISA yourself, as it will count against your annual ISA allowance).
Investors willing to increase their risk levels may see better returns on their cash or supplement their disposable income by buying shares in high yielding companies in a Stocks & Shares ISA. Alternatively, funds are an ideal way to start investing or to broaden your investment horizons. But it is important to be aware of the risks as well as the rewards. At all times, you should be aware that you intend to move monies from a cash savings arrangement to investments and be comfortable and understand the inherent risks therein. It's well known that investments, their value 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 an appropriate balance.
It’s also worth bearing in mind that if you should require access to your monies 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. You should ensure you take adequate reflection time before committing any cash savings to a medium to long term investment and always hold an emergency fund in cash for ease of access and security.
It’s easy to transfer a cash ISA into a Stocks & Shares ISA, just complete a transfer form and send it to us, then we’ll liaise with you current ISA provider and do the rest for you.