Transferring Cash ISAs

ISAs have proved to be one of the most successful strategies to encourage savings and investments in the UK. First introduced in 1999 to replace the outdated PEP and TESSA products, the popularity of ISAs has grown steadily over the years with over 100 million ISA accounts opened during this period.

However, Cash ISAs remain more popular than Stocks and Shares with approximately 1.5 times the value invested in Cash ISAs as Stocks & Shares.

The revisions introduced in April 2008, were the first major revision to the scheme since they were first introduced. Amongst the revisions was the long awaited increase to the ISA limits (up just £200 to £7,200 per tax year), the transition of PEPs into ISAs and the ability to transfer existing Cash ISAs into Stocks & Shares ISAs.

To help advisers explain these rule changes to their clients Keydata has developed a new fact sheet ‘ISA & PEP Rule Changes’. Click here to download.

A whole new opportunity

Up to now, one of the downsides of the ISA regulations has been the inability to transfer between asset classes without losing their tax free status. If an investor wanted to move from cash into stocks & shares they had to close their Cash ISA and open up a new Stocks & Shares ISA using their current tax year allowance.

This is one of the reasons why many people have accumulated large amounts in cash. To overcome this problem and to encourage more investment in UK Companies, the Government have now changed the rules to allow transfers from Cash ISAs into Stocks & Shares ISAs (but not visa versa).

To allow investors to take advantage of this opportunity, Keydata has made all of our plans available to accept Cash ISA transfers.

We have a range of plans providing the potential for either fixed interest or growth over a range of investment periods.

Alternative solutions from Keydata

All of our investment plans below are available now for Cash ISA transfers.

Defined Income Plan offers attractive levels of fixed income or capital growth and the potential for full capital repayment at the end of a 5, 7 or 10 year term with no exposure to stock markets.

Click here for full details

Dynamic Growth Plan Plus provides the potential for accelerated growth in the FTSE 100 Index and a substantial capital protection barrier with the potential to return investors’ capital at the end of a fixed term.

Click here for full details

Extra Income Plan provides attractive levels of fixed income with a substantial capital protection barrier with the potential to return investor’s capital at the end of a fixed term term.

Click here for full details

UK Protected Growth Plan provides investment returns linked to the performance of the FTSE 100 Index but with 80% of capital and 80% of growth permanently locked in for security (after the 5% initial charge has been removed).

Click here for full details

All of the above investments are different to bank and building society accounts where capital is guaranteed and, with instant access accounts is readily available without penalty. Capital is at risk and investors must be prepared to lose some or all of their investment capital.