Is there an ISA worth having right now?

[Crafty_]

If you are risk adverse you could consider opening one of the current accounts that pays some half decent interest. Its taxable of course but will probably beat cash ISA rates. I think Halifax do one and Santander have their 123 account. Cash obviously instantly available and its guaranteed.

I couldn't find an ISA last year that beat my current account, so moved the money there as I didn't want to go down the investment route/didnt know if I needed to get at the money straight away, the view was to look in to stocks & shares / investment down the line, haven't got round to it yet! So the money has been earning 3% before tax.

[kev1974]

The only slight benefit I can see to cash ISAs is that if you fast forward five years from now, by then interest rates are likely to be higher than today. So by then it might be worth having again and deliver a tax benefit worth having. BUT the nature of a cash isa is that you won't be able to pile a lot of cash into it to get that tax benefit then, you have to keep funding it now, to build up the balance.

SO short term they are currently a waste of time, long term they might be more worthwhile assuming interest rates rise again, then again if looking long term there are probably better investments, then again those longer term investments are likely to be more risky than a slowly funded cash ISA.

[DSLiverpool]

kev1974 said:

The only slight benefit I can see to cash ISAs is that if you fast forward five years from now, by then interest rates are likely to be higher than today. So by then it might be worth having again and deliver a tax benefit worth having. BUT the nature of a cash isa is that you won't be able to pile a lot of cash into it to get that tax benefit then, you have to keep funding it now, to build up the balance.

SO short term they are currently a waste of time, long term they might be more worthwhile assuming interest rates rise again, then again if looking long term there are probably better investments, then again those longer term investments are likely to be more risky than a slowly funded cash ISA.

You can convert a S&S into cash and vice versa

[gregf40]

DSLiverpool said:

You can convert a S&S into cash and vice versa

The interest rate paid on cash in a S&S ISA is normally 0 though as you are not 'meant' to keep cash in it.

[DSLiverpool]

gregf40 said:

DSLiverpool said:

You can convert a S&S into cash and vice versa

The interest rate paid on cash in a S&S ISA is normally 0 though as you are not 'meant' to keep cash in it.

Move money from one to the other - S&S when rates are low, cash when they recover - as long as you have your yearly allowance invested its relatively flexible now.

[KTF]

BoRED S2upid said:

I use HL lots to research on the different funds and costs.

I used iii and ticked all the boxes for highest risk, say goodbye to your money, etc. then selected the one at the top of the results.

Not exactly scientific but in 12 months (http://www.iii.co.uk/investing/factsheet/FR15) has returned this:

[gazapc]

If this is an emergency cash fund then not sure if a S&S ISA will be best but will leave that up to you...I have my emergency cash earning much better interest rates than in a cash ISA by just opening a few high yielding current accounts.

http://www.moneysavingexpert.com/savings/savings-l...

I have about £10k saved this way earning nearly 5% interest (so just under 4% after tax, if you're in the 40% band then won't be as good)
You can also get various signing up/switching bonuses (£100+ each) fairly easily. All you need is a sacrificial account and then to move some cash around once a month.

[BoRED S2upid]

KTF said:

I used iii and ticked all the boxes for highest risk, say goodbye to your money, etc. then selected the one at the top of the results.

Not exactly scientific but in 12 months (http://www.iii.co.uk/investing/factsheet/FR15) has returned this:

Nice! I wasn't so brave and just selected a few that had done over 10% a year every year for the past 5 thinking if they have a shocker they might still manage 3 or 4.

[trowelhead]

OP - you'll find this useful re: costs

http://i.dailymail.co.uk/i/pix/2014/03/13/article-...

As for what to invest in, have a read:

http://monevator.com/category/investing/passive-in...