Regular saver vs. stocks and shares?

nukebox

masonic wrote: »

It might be worth doing a search of this board (and the ISAs board) as quite a number of people have posted portfolios for discussion and you'll probably learn quite a bit from those threads. The main points would be to try and avoid S&S products sold by high street banks, to split the money across a number of funds (you should be able to do £50 a month into 6 funds if you like) so that you have a well diversified selection and perhaps post your ideas back to this thread for comments.

Yup, it'll take me a bit of time, but I'm looking around. H-L are high up my list for where to open the ISA. Just need to decide on the funds.

nukebox

Due to an injury I haven't been able to progress this far. But I've started investigating providers. Ideally, I'd like to hold a mix of shares and funds within ISA for tax efficiency. I think that pretty much puts me down the path of opening an account with III.

Do you agree? Are there other providers that provide a decent platform for both funds and shares within an ISA?

ViolaLass

nukebox wrote: »

Right, I think the thing that's confusing matters a bit is probably that I don't have a lump sum to cycle through - other than what's in the 3.5% ISA. As you say, I could take the money out of the ISA and push it through the regular savers, giving me ~£150/yr in interest, but that would be offset by the loss in interest from leaving the cash in the ISA in the first place.

Let's say you have £1200 in the 3.5% ISA. You transfer £100 a month for it to the regular saver.

If you left it in the ISA, you'd get 3.5% on the lump sum at the end of the year. If you tranferred it bit by bit to the RS, you'd get approx half of 3.5% on the lump sum AND half of 6% on the lump sum as on average throughout the year, half of your lump sum would have been in one account and half in the other. That makes c 4.75% for the year.