Will I be able to transfer my cash ISA to a Stocks and Shares ISA when I have finally made up my mind?
05 April 2022
Question by Nobumi
I am being indecisive about which Stocks and Shares ISA I go for. So, I'm thinking of opening a cash ISA account, so that I'll be able to not lose my allowance for this year, but I will be able to transfer it to a Stocks and Shares ISA when I have finally made up my mind. Would this work?
Answered by Boring Money
Hi Nobumi
Yes, you're correct and it's smart thinking!
The ISA allowance is a use-it-or-lose-it allowance each year and can be switched back and forth between a Cash ISA and Stocks and Shares ISA as you wish.
You could therefore open a Cash ISA today, and then when you've decided which Stocks and Shares ISA to go for, say in a month's time, you could transfer in the 2021/22 Cash ISA funds to that Stocks and Shares ISA without having used any of the 2022/23 tax year allowance and therefore have a full £20,000 allowance left to use.
Hope this helps
Jamie
