Nationwide ISA decision

Silent_Bob_3

Having taken out a Nationwide Isa in June 2002 and paying in £100 a month (split 50-50 between a Growth Fund and a Tracker Fund) I've made just under 6% to date. However I'm thinking of packing this ISA in as it's not performing as well and the market is very unpredictable at present.

What are the best options in savings accounts for investing £2500 ish now and paying in £100 a month, although I will need to withdraw £2000 next summer?

Many thanks in advance.

aagoren

First do not withdraw it transfer it otherwise you'll be able to invest only £500 this year.

a good fund is Fidelity Special Situation.
invest thru discount broker not directly to save the initial charge.
Good Dsicount roker is bestinvest or cofund.

Milarky

What about a mini cash ISA for this year? You would reach £3000 by about the end of the tax year and could just carry on paying in at that rate?

[.. or have I missed something.. you did want savings account suggestions did you not?]

Silent_Bob_3

Yes I really was looking for a good savings account rather than leaving the money in an ISA. I might split it so I put £50 into a cash ISA and £50 into a savings account.

Been looking at the saving account articles and some there seem like a good deal.

dunstonh

First do not withdraw it transfer it otherwise you'll be able to invest only £500 this year.

a good fund is Fidelity Special Situation.
invest thru discount broker not directly to save the initial charge.
Good Dsicount roker is bestinvest or cofund.

Fidelity's Spec Sits is regarded as a very good fund but it is considerably higher risk than the two funds that are invested in currently. It does form part of my own portfolio its only one of 15 funds i invest in with my portfolio.

Silent Bob, you have invested for only 2 years and during a time when the stockmarket has been performing poorly.   You do not invest in the stockmarket to make better than savings account style returns in just 2 years.   You should be looking at 10-15 years.    In addition, when paying monthly, you want poor performance in the early years so you build up your units nice and cheap. A 6% gain (assuming you have worked out the correct return based on monthly contributions and not taken an overall gain on the amount paid in) is not a bad return at all.

Perhaps you shouldnt have invested in the stockmarket in the first place as it appears you do not have an understanding of how the stockmarket works.  If you want something with lower risk and therefore potentially lower returns but with lower volatility, you should look towards gilt funds, corporate bonds within an ISA.

Silent_Bob_3

I understand perfectly well how the stockmarket works, as I started these ISA's after the last big crash.

Its just that I will be using most of the money I have in this ISA at the moment to cover a large part of the cost of my wedding next October and I wanted to safeguard the money invested now until that time, rather than risk the market crashing and not having enough money for said wedding.

Thanks for the advice though, after next October I will have far more money to invest and will look then at changing my investments.