ISA/PEP clarification please.

ipri

Hi....We have been putting the max allowed into Isas for a while also an old Pep...The isas are "Cash" isas...are these safe in these uncertain times?I thoght they were just tax free saving schemes but the pep is going down quite a lot!....advice please. ian

ipri

PS..have just realised the pep is an Equity based thing..the rest are cash isas so,the cash element is safe but the equity bit is risky?? have i got this correct? ian

dunstonh

ipri wrote: »

PS..have just realised the pep is an Equity based thing..the rest are cash isas so,the cash element is safe but the equity bit is risky?? have i got this correct? ian

PEPs dont exist any more. It is now a stocks and shares ISA.

S&S ISAs can invest in stockmarket, property or fixed interest securities. Most will have some degree of risk but the risk is not on/off but a sliding scale from very low to very high.

So, it depends on where you invest as to how much risk you take. The S&S ISA itself is just a container for the investments. You can switch the contents of that container to other investments without losing the ISA tax free status if you feel the risk is not in line with your personal risk profile.

ipri

Thanks...can I transfer this money (£10500) to a cash isa with the same people(Stand. Life) now ? or do I need to wait until next April and transfer £3600? ian

Ps I assume the cash isas are safe?

dunstonh

can I transfer this money (£10500) to a cash isa with the same people(Stand. Life) now ?

No. It has to remain in a S&S ISA. Although you can transfer the provider of the S&S ISA.

Ps I assume the cash isas are safe?

Only risks with cash ISAs are with inflation risk and shortfall risk (if aiming for a target amount). There is no investment risk.