Where to save after mini cash ISA?

grifferz

Hi,

apologies for what is most likely a very newbie question but I'm not sure what to do next.

Finally after managing to clear all debts and I've now had a mini cash ISA for just over a year. It looks like this tax year I'll be able to save more than £3,000 so I should put the excess elsewhere.

Question is, where? This year it's not likely to be a lot extra, so should I just follow Martin's advice in the "savings fountain" article and get a regular savings account which is step 2? I can afford the minimum monthly payment maybe plus a bit extra.

At what point should I start thinking about a stocks and shares mini ISA, and what is the advantage of a maxi ISA over a combination of cash and shares mini ISA? Just that you can pump more into the shares component?

Cheers for any enlightenment,
Andy

Sillychuckie

I don't have time right now to go into too much detail, but it really depends on what you are after. In the short term, regular savings accounts will provide a higher return than your stocks and shares ISA. In fact, most people say that it is not worth looking at true investment in a S+S ISA unless you are prepared to invest for somewhere around the 10 year mark.
If you are not prepared to tie up the money for that long, it might not be a good decision.
However, atleast any interest you make on the ISA is free from the tax man and you are making the most out of this years allowance. As it is 'Use it or loose it', it may make the most sense for you to go down the tax free ISA route.

It really depends on how much money you have and how long (if at all) you are prepared to tie it up for. If it isn't that long, stick to reg-savings and savings accounts with a decent interest rate (5%+).. (but of course, be prepared to pay tax on your interest).

grifferz

Thanks Sillychuckie. Like I say I only have a small amount in excess of the cash mini ISA and don't really want it tied up long term, so it looks like a regular saver will be best.

Thanks again.

grumbler

See also Starting Saving guide