My ISA earned me nothing ADVICE PLS

tanith

Just a newcomer to this site and having read some of the posts on Mini Cash Isa I realise what an idiot I have been.. I have a Teachers Share Isa which I took out in 2001 and I really just put in the money and then forgot about it.......... now I have got out the statements they have sent me and realise that my £3000 is now worth WAIT FOR IT ...£2957.08 .......... I just cannot believe that I let my money just sit there and earn nothing for 5yrs...
I am a novice when it comes to saving , I do save what little I can but then I go and do something this stoopid..... Good Intentions but really don't know what I am doing...
I have a Mini Isa with IF that has increased and I just checked the rate and it is paying 4.55% I pay a regular monthly payment into this pot....
What should I do now ? I just checked on the best ISA recommendations and have sent for some info with First Direct.. should I keep the IF and then transfer the Teachers one into a new ISA with one of the companies paying a better rate ? Any advice gratefully received

tomstickland

I can't have been a cash isa if it lost money? Was it an investment isa? Or did charges erode the value?

I've got a First Direct mini cash ISA paying 5% tax free.

tanith

Sorry I just edited my first post it was indeed not a cash ISA but a share ISA

tomstickland

What sort of investment is it. What are the charges like?

I've got £3K in a cash ISA, looking to open another one in April, plus I'm going to start an investment ISA soon. Investment ISA is not a safe savings vehicle. It trades more risk against the opportunity to make a better return. If you want safe savings then:
1) Cash ISA 5%
2) Instant Access savings account, or high rate paying current account, eg: A&L 5%, LTSB 4$
3) Regular savings acccount, A&L are offering 10% and Halifax (I think) 7.5%.

tanith

I have a £1000 in 3 different funds and the initial charges were 5.50% all the funds are with Teachers Sovereign Trust......... obviously now not a good choice........

EdInvestor

the initial charges were 5.50%

Ah, plus no doubt an annual charge and a fund management charge etc.

Always use a discount IFA such as www.cavendishonline.co.uk when buying investment ISAs so they will rebate all these charges back to you.

You'll also have suffered from stockmarket falls initially and then gone through a recovery period, so you haven't in fact made a loss.

From now on, hopefully you should make a profit.

Can you tell us exactly where your money is invested ?

tomstickland

I was offered a Scottish Widows fund via Lloyds, but they want to charge 5% on all payments I make into the fund. Not good, hence why I'm taking advice from this board and going via online broker.

ffacoffipawb

tomstickland wrote:

I've got a First Direct mini cash ISA paying 5% tax free.

Are you sure?

The current issue pays 5.5% until 15th February and 4% thereafter, so during 2006 it will pay 4.19% approximately (unless you move it asap after 15th February!).

tanith

EdInvestor from your reply it seems that from now on my Cash Isa should start to show a profit. I guess its my choice now wether to leave it and hope that now it has recovered it will do better or move now into another fund that appears a better deal .The fund is with Teachers Provident Society The Sovereign Unit Trust.... not sure what other info u want.

Happy New Year

dunstonh

EdInvestor from your reply it seems that from now on my Cash Isa should start to show a profit.

Its not a cash ISA. Its an Equity ISA. Also known as a stocks and shares ISA. It can go down as well as up but had greater long term potential than a cash ISA.

You chose an obscure provider for some reason. A fund supermarket would be a more logical reason. Unless you had some ethical grounds for chosing Teachers Prov.

tanith

Sorry I seem to have Cash Isa on the brain, I now what I meant to say.....

I chose that provider as they were a Freindly Society and I had some saving with them and decided to put the money saved into the Isa with them.....