Share Isa with 'Cash-like' product

isasmurf

The "cash-like" test is that if the product guarantees to return at least 95% of the original investment within 5 years it will be deemed "cash-like" and be classified as a Cash ISA.

Cash funds may not be held in a stocks and shares ISA.

If cash is held in a Stocks & Shares fund it will incur a 20% 'charge'.

cheerfulcat

Sorry isasmurf, I was talking about cash unit trust funds ( as suggested earlier in the thread ). Should have made myself clearer...

Chadsman

I speak as a layman with no particular expertise. I would be happy to be corrected if wrong...
surely there is no GUARANTEE a cash fund will return anything. You can lose out on exchange rates if you buy/sell at the wrong time.
:grouphug:

cheerfulcat

No, there's no absolute guarantee ( though I don't think that they deal in foreign exchange as such - some sovereign debt perhaps but it's mostly sterling cash deposits AFAIK ). But the cash funds all have as their main objective something along the lines of " to provide a high level of capital security ". Why this should be denied to investors in a maxi ISA is a question for the Chancellor.

Chadsman

I had always thought there were funds that dealt in foreign currencies. Is that not the case?

...anyway Corporate bonds or government gilts can be put in a shares ISA ...I think.
Best regards,
Chadsman