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Can I drip feed from a prior year cash ISA into a Stocks and Shares ISA with a different provider?

21 February 2022

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Question by Gary

Can I drip feed from a prior year cash ISA into a Stocks and Shares ISA with a different provider?

eg, 3 year old cash ISA with (say) £12,000 in it. Could I do a £1,000 partial transfer each month into an S&S ISA?

My aim is to avoid a £12,000 ‘lump’into a volatile market.


Answered by Adam Holt

Hello Gary,

Yes, it would be possible to do a partial transfer each month to drip feed into the market, whilst maintaining the ISA wrapper. It would involve a fair amount of admin work at your end though. Is your S&S ISA provider on a platform? If so, then most would hold a cash account within the S&S ISA. Therefore, it may be easier for you to do one transfer for the full £12,000, over into cash within the S&S ISA and then just invest £1,000 per month. I assume the interest rate is rubbish with the Cash ISA so you won’t be missing out on much returns there. This would give you more flexibility and control to invest the monies when you feel is appropriate and you won’t be reliant on the partial cash ISA transfers being sent in a timely manner.

Hope that helps,
Adam