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Cash held within a Halifax stocks and shares ISA

Last post Thu, Feb 28 2008, 2:42 PM by mooreaz. 5 replies.
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  •  Thu, Feb 28 2008, 2:42 PM

    Re: Cash held within a Halifax stocks and shares ISA

    No probs.

    Personally I don't like these High Street branded funds. They tend not to perform as well as they should and cost too much money.

    I would expect a Corporate Bonds fund to be pretty low risk slow and steady return considering they are investing in fixed interest bonds.

    To actually lose money over the past 2 years is unbelievable.

    If I were you I would look at one of the funds from someone like Foreign and Colonial or Legal and General. They can be bought through ISAs with discount brokers and are much cheaper than through the high street.

    Alternatively, ETFs (Exchange Traded Funds) have bond-linked equities that again can be bought through a decent Self-select ISA.

    Hope this helps...

    • Post Points: 5
  •  Thu, Feb 28 2008, 2:04 PM

    Re: Cash held within a Halifax stocks and shares ISA

    mooreaz:

    Howdy,

    I agree with what Clare says. It is likely that it is the Halifax's own rules to not have uninvested cash. This will be to keep your money invested in their funds.

    When go to you Barclays and tell them to do the transfer, you can instruct them to sell the units and close the Halifax ISA for you.

    From what you have said I would definitely not sell the units yourself through the Halifax.

    Hope this helps, albeit a re-iteration of Clare's comment really.

    Excellent thanks for the reassurance.It crossed with last post but I appreciate you taking the time to reply.

    • Post Points: 20
  •  Thu, Feb 28 2008, 2:01 PM

    Re: Cash held within a Halifax stocks and shares ISA

    Clare,

    Thank you for your very prompt advice.

    This was my original intention but I thought it would be easier all round and less costly for Halifax to sell in their own product,do a cash transfer, and for me to pick up a new fund from Barclay's list of products. However,I do have the transfer form and will proceed the way you suggest.I am awaiting a call back from Barclays just to confirm that they can easily sell the Halifax Corporate Bond fund.

    I have to say that Halifax have disappointed me in many respects over this product and their advice.Initially sold as a low risk safe predictable return of around 5.5% tax free within the ISA it performed well initially until the last 18 months where it has actually lost value. The customer service was very poor when I also queried the charges levied on the account and felt that the advisor had no idea how they were calculated and now the incorrect advice given regarding selling the shares.

    In between Halifax as you know,try to cross sell by offering an annual review. In itself it may be a good idea for some but not for just renewing regular savers etc.When I spoke to their IFA I mentioned my disappointment with the return on this Corporate Bond fund and he quickly demonstrated he knew nothing about it.He said if I didn't want fixed low returns of a cash ISA,i would have to take more risk and invest in equities.When I explained it wasn't a cash ISA,he said he was very aware of his subject as he was an IFA and sarcastically said you obviously know what you want and said goodbye!! No wonder things are tough at HBOS currently.

    • Post Points: 5
  •  Thu, Feb 28 2008, 1:43 PM

    Re: Cash held within a stocks and shares ISA

    Howdy,

    I agree with what Clare says. It is likely that it is the Halifax's own rules to not have uninvested cash. This will be to keep your money invested in their funds.

    When go to you Barclays and tell them to do the transfer, you can instruct them to sell the units and close the Halifax ISA for you.

    From what you have said I would definitely not sell the units yourself through the Halifax.

    Hope this helps, albeit a re-iteration of Clare's comment really.

    • Post Points: 20
  •  Thu, Feb 28 2008, 1:16 PM

    Re: Cash held within a stocks and shares ISA

    Hi Backfoot

    no, I don't think that is the correct advice. However, given what Halifax has said it may be worth instigating the transfer process from the other way round ie. contact Barclays and ask them to transfer the funds from the Halifax account. Whatever happens, don't let Halifax close the Isa and put the money back into your bank account as you will lose the tax-free status.

    • Post Points: 35
  •  Thu, Feb 28 2008, 12:48 PM

    Cash held within a Halifax stocks and shares ISA

    I hold an ISA Plan with Halifax in their Halifax Corporate Bond Fund. Basically it has underperformed and I want to sell the holding pending further investement but retain the ISA status while I decide the best place.It is likely that I will transfer the funds to my main Stocks and Shares provider which is Barclays.

    When I rang Halifax the lady said that if I sold the shares in the fund the ISA would close and they would return the funds to my bank account.

    This doesn't sound correct to me as at any stage I don't have to be fully invested in stocks and shares do I ? I thought the rule about deducting tax on cash holdings even within an ISA was there as the discouragement to hold cash (as well as the low rate of interest paid).

    Are they correct?

    Thanks for any thoughts/advice.

    • Post Points: 20