How much can I still invest?

TheBigEasy

Hi,
I paid the maximum into a cash ISA last April for the 2012-2013 year and I have been paying 50 a month into a S&S ISA so have accumulated 600 there.
Am I right in thinking that I am still allowed to put another 5040 into my S&S ISA before April 5th.

Thanks for any help
Jon L.

saintalan

Yes you can still invest up to the limit £5640.

Cheers

Alan

lisyloo

Am I right in thinking that I am still allowed to put another 5040 into my S&S ISA before April 5th.

Yes

However generally it's better to "drip-feed" S&S.
The stock market it relatively high right now so some might say you are buying at a realtively high price.
Unless your a sophisticated trader then it's best to put money in monthly so you get an average. You won't do brillianly but you won't do badly either that way.

Of course if you've come into some money then there's not a lot you can do, just thought I'd point it out.

We got an inhertiance once and put it in at a bad time.

saintalan

lisyloo wrote: »

Yes

However generally it's better to "drip-feed" S&S.
...

Food for thought there lisyloo, thanks. Although I guess extra charges may be incurred depending on what you are investing in?

Like you say depends on whether you have the funds upfront but unlike a CASH ISA at least you are not losing interest by drip feeding it.

Cheers

Alan

innovate

saintalan wrote: »

Like you say depends on whether you have the funds upfront but unlike a CASH ISA at least you are not losing interest by drip feeding it.

How are you losing interest if you drip-feed a cash ISA, whilst you are not losing interest by drip-feeding a S&S ISA? Surely you get interest or you don't, regardless of the future destination of the money.

mel48rose

Better hurry up, the clocks ticking.........

p00hsticks

innovate wrote: »

How are you losing interest if you drip-feed a cash ISA, whilst you are not losing interest by drip-feeding a S&S ISA? Surely you get interest or you don't, regardless of the future destination of the money.

For Cash ISAs, as with other savings account, interest earned will be calculated on a daily basis based on the amount in the account that day. So the more you put in and the sooner you put it in the more interest you earn.

An S&S ISA doesn't pay interest, although depending on the particular funds/shares invested in you may get dividends paid out once or twice a year. For some investors the dividends are their main aim, but for most they are looking for capital growth over many years as the price of their shares rise. However, although the overall growth of the stock markets over many years tends to be upwards, in the short term they can move up and down from day to day. By 'drip feeding' money in on a monthly basis, it means that you don't run the risk of buying all the shares at once at a time when the price is high (although conversely, you also don't get a chance to buy them all at a low). Some months the price may be up and some down, but that will average itself out over time.