Welcome!

News Feed Item

Confusion Reigns Over ISA Transfers From Stocks and Shares to Cash

Nationwide calls for greater flexibility in the ISA system

LONDON, UNITED KINGDOM -- (Marketwired) -- 03/21/14 -- More than one in ten (12 per cent) of the UK's over 45s population with a stocks and shares ISA have considered transferring these funds into a cash version, according to new research(1) from Nationwide Building Society, even though they cannot do so under current ISA rules.

The survey highlights that the primary rationale (40 per cent) behind this is the feeling amongst savers aged 45 and over that their money would be safer in a cash ISA. Nearly a third of them (31 per cent) admit that they want greater flexibility to manage their finances, which they believe a cash ISA can offer.

Of those who hold both types of ISA, three in ten (30 per cent) of over 45s hold more than 50 per cent of their ISA savings in a stocks and shares ISA. Nearly one in ten (nine per cent) have also used up their full stocks and shares ISA allowance for the 2013/14 tax year. Unfortunately, as the rules currently stand, people only have two choices: either leave the funds where they are, or withdraw them and lose the ISA wrapper.

That is why Nationwide Building Society and its Chief Executive, Graham Beale, are calling for changes to the current ISA system, including allowing people to transfer from stocks and shares ISAs into cash ISAs.

However, despite the desire to transfer from stocks and shares ISAs to cash ISAs, three in five people (60 per cent) over the age of 45 are unaware that they cannot do it.

Graham Beale, Nationwide Building Society's Chief Executive, comments: "I would like the Chancellor to allow people to transfer out of stocks and shares ISAs and into cash ISAs. This would be particularly helpful for those older savers approaching retirement who have stocks and shares ISAs but want more flexibility about how they manage their capital and access their cash, especially those who prefer to de-risk their capital by putting it into cash savings rather than stocks and shares. Certainty of income and protecting capital is hugely important for older savers, particularly where it is a vital part of their retirement income. So, it is no surprise to see our research show that while one in five older savers have a stocks and shares ISA, more than half of them have thought about transferring to a cash ISA."

ISA parity

HMRC data suggests that in 2012/13 approximately four cash ISAs were taken out for every one stocks and shares ISA(2). This backs up the Society's research findings that a large proportion of savers want the greater flexibility to manage their finances that cash ISAs allow.

Nationwide's research also highlighted that more than a third (36 per cent) of Britons with a cash ISA have used up their full cash ISA allowance for the 2013/14 tax year. This compares to just eight per cent with a stocks and shares ISA who have done the same.

Graham Beale continues: "At present, you can put twice as much money into a stocks and shares ISA than you can into a cash ISA, which clearly means people with stocks and shares ISAs have the potential to earn more tax-free interest than their cash ISA saving counterparts. This doesn't seem fair to me, so in the run up to this week's budget, I wrote to the Chancellor calling on him to increase the cash ISA limit so it is equal to the higher stocks and shares ISA limit."

To read our Chief Executive, Graham Beale's full thoughts on the current ISA system, please click here: http://your.nationwide.co.uk/your-news/chief-executive-blog/Pages/equalise-isa-limits-to-help-support-savers.aspx

Notes to editors:

(1) All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 5,584 adults. Fieldwork was undertaken between 7th - 11th March 2014. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

(2) HMRC data for 2012/13 shows there were 11.7 million cash ISAs taken out and 2.9 million stocks and shares ISAs.

Find recent press releases and photos at the Nationwide Media Centre: www.nationwide.co.uk/mediacentre

Twitter: @NationwidePress

YouTube: http://www.youtube.com/user/NationwideBSocietyUK

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.