Mini ISA Question

Moncs_2

I have a mini ISA with Royal and Sun Alliance which I pay £50 per month into.

I recieved my recent yearly statement to find out that I had actually made a loss.

Contribs inc bonus upto 2003 - £2700
Contribs during 2004 - £600

but the value is only £2545.


I know ISA's are risky so I'm looking to transfer this money to some other type of savings with maximum return. Can anyone suggest?

jimclark1967

Shares can go down as well as up - You need to take a long term view, next year's statement might make much better reading. A mini cash ISA carries no risk but will only gain around 5% per year (tax free)

You'd need a crystal ball to know whether it's better to switch.

Not much help I know!

Moncs_2

jimclark1967 wrote:

Shares can go down as well as up - You need to take a long term view, next year's statement might make much better reading. A mini cash ISA carries no risk but will only gain around 5% per year (tax free)

You'd need a crystal ball to know whether it's better to switch.

Not much help I know!

If it's a no risk investment, how come I've lost money?? (sorry if I seem thick)

Moncs_2

Thanks for the swift reply, I thought it was an ISA albeit and MINI one

Mini ISA is on all my documentation

surfcat

yes, it could still be a 'stocks and shares mini isa' ie maximum 3000 per year invested in stocks and shares within the isa wrapper. And of course shares can go down as well as further down....

Kazza242

surfcat wrote:

yes, it could still be a 'stocks and shares mini isa' ie maximum 3000 per year invested in stocks and shares within the isa wrapper. And of course shares can go down as well as further down....

I thought the Stocks and Shares mini isa allowance had been increased from £3,000 to £4,000 from this tax year onwards?

Moncs_2

Yes it is indeed a stocks and shares mini isa, just double checked the documentation.

If I was to transfer or move the money to a more secure savings, what would you recommend?

dunstonh

What fund is it invested in? Royal london did have an insurance isa running (which is now classed as a stocks and shareas isa). A came across one recently (which i am in process of transferring) and the scheme had a capital guarantee on funds saved but not on the bonuses paid. So there was some security.

You need to clarify by what you mean as more secure as you could end up moving out of a plan with investment capital guarantee into one with low volatility but with no capital guarantee.

You cannot transfer a stocks and shares ISA into a cash ISA. It would require surrender. Again, RL did have a 5 year reducing penalty (may have been 4 years) if it is that type of plan.