If you have a low performing Cash ISA you can:
- Transfer to another Cash ISA with a better rate
- Transfer to a Stocks and Shares ISA
If you are not happy with your Stocks and Shares ISA, you can:
- Make a Stocks and Shares ISA transfer (you may not transfer an investment ISA into Cash)
With Cash ISA rates so low, many investors are looking at transferring into Stocks and Shares ISAs, while those who already have Investment ISA sare starting to realise the potential of making a Stocks and Shares ISA transfer and putting their investment into a higher yielding fund.
Although Stocks and Shares ISAs do carry more risk than Cash ISAs, the potential returns – either income, growth or both – are significantly higher, and there are a range of levels of risk, so you can choose an account that you're happy with.
And remember, you can have both a stocks and shares ISA and a cash ISA - up to half of your total allowance can be invested in a cash ISA, and the remainder into a stocks and shares ISA, or the entire amount can be invested in stocks and shares.
If you decide to move your cash investment and make a stocks and shares ISA transfer, i.e. transfer your cash ISA into an investment ISA, as far as tax laws are concerned, you are free to open another, providing you do not exceed the ISA limit.
It is important to read the small print to check terms and conditions before making any decision on ISA transfers, as accounts can vary significantly from provider to provider. If there is any uncertainty about ISA transfer terms with your current product, contact the bank, building society or company that holds the ISA.