Confused, with ISA funds

guitaruser

Situation:

Paid £200 per month into ISA for 5 years.

Cash in value roughly £13k.

Question:

Does one draw the money now spend half re-invest the other?

Draw the 13k and re-invest the lot into something else?

Leave it alone?

The reason I ask is a new car is on the cards and 6k is needed, could be from a loan @5.7%, or could use the above.

Not very good at finance so any help/advise is much appreciated.

kenshaz

Why borrow when you have savings ,you will never get 5.7 tax free at the moment,Martins advice is to pay off debt before you save Why then do you want to take on debt ,and keep your savings at a lower rate

jem16

guitaruser wrote:

Does one draw the money now spend half re-invest the other?

Why not just withdraw the £6 for the car and leave the rest in the ISA?

Andy_L

If it's an equity ISA it could be producing better than 5.7% so if the OP leaves it in there & uses the £200 month to pay for the car rather than investing it it could be a better deal.

jenniferpa

I just wanted to point out, as it's not quite clear from the OP's post, that if he withdraws the entire amount, he can't simply re-invest it in another ISA. Only a transfer will keep it as a tax-free investment

guitaruser

Andy_L wrote:

If it's an equity ISA it could be producing better than 5.7% so if the OP leaves it in there & uses the £200 month to pay for the car rather than investing it it could be a better deal.

I guess thats the kind of advice I was looking for, what is an OP?

This advice is not for me (I could only wish to have 13k in savings)

I'll find out what type of ISA it is.

jem16

guitaruser wrote:

I guess thats the kid of advice I was looking for, what is an OP?

OP = Original Poster