What to do with an ISA

[Willy Nilly]

Dear PH Money Boffins,

My long term finances are sorted, get a house with my job, no debts etc. I have just about filled this years cash ISA allowance and have some premium bonds which don't pay very well but are a bit of fun.

I have about £10,500 in a cash ISA that has matured and needs another home, a home that pays better interest. The money is pencilled in for a new car at some point. The car in question is old, but I could probably eek another couple of years out of it. Should the car expire in an expensive manner, I'd like the option to get at my money and go and buy a new one for cash, unless there is a spectacular low interest finance offer on.

So what to do with the money? It doesn't have to be cash, I'd just like access to it if and when I need it as I have a lot of money tied up elsewhere.

Thanks.

[Simpo Two]

Possibly not an answer, but you're concerned about 2-3% interest when you're going to buy something that will fall by 50% in three years?

[Willy Nilly]

Simpo Two said:

Possibly not an answer, but you're concerned about 2-3% interest when you're going to buy something that will fall by 50% in three years?

Depreciation will not be an issue. The car will be bought late used, looked after and run into the ground. The current car probably hasn't last any value in 4 years maybe longer.

[ringram]

Bonds in a Stocks ISA. New issues are around 5.5% these days for reasonable companies. Fairly liquid though you pay transaction fee's.

Or Divi stocks paying around 4% or so. With some inflation protection albiet with market volitility. Probably not good in lieu of a cash account.

Cash is lowest risk, lowest return.. Dial up risk and return from there..

[Slowped]

Another vote for stocks and shares ISA.

[droopsnoot]

The thing to remember with S&S ISA (or any S&S-based investment) is that if you need to get the money quickly, you might have to put up with selling at a bad time, when the investment is worth less than you put in. Over time, probably great, and you can get at it whenever you like, but you have to be prepared to get out less than you put in unless you can time the sale.

[Willy Nilly]

I have a stocks and shares ISA and the value goes up and down like a yo-yo