is there a "right" timing for putting a lump sum into an ISA ?

darentriskit

Forgive the multiple postings but I,m a newbie to this !

how to maximise interest on small lump sum no risk
hi everyone I have spent the last two days reading this site and you guys are really knowledgeable and helpful - I wonder if anyone can please help me with my question
i'm 57 with 10k ( poss 17k) to make work over the next 8 years till my state retirement age - house is paid no debts and managing ( just ) on small pension
unlikely to work again ( ill health ) BUT and heres the rub i'm so averse to risking this money its almost making me ill - cos neither can I stand looking at it squandering in my measely 1% e-saver natwest account
I reckon only to risk 10 of it as the rest will be my rainy day fund and I,ve seen that santander 123 give 3% , and Skipton ( just ) 5 year bond @ 3.5%
I do not have an ISA and am wondering would a mix of cash and stocks n share ISA be a suitable low risk - if so which can anyone recommend - I simply cannot put any of the capital at risk so it must be secure -also is there a "right" timing for putting a lump sum into an ISA ? apologies if this sounds "thick" but like I said I am new to this !!

I suppose I need to ask myself am I wiling to let this be "tied up" and not accessible ( ie 3% saving account 5 year) OR have the hassle of moving my whole banking over from natwest to santander - am I just being lazy? pathetic - or are there other products out there which may better suit my risk averse nature - any advice would be gratefully received - thaks so much

very kind regards

Archi_Bald

As has already been commented on your other post - - if you cannot tolerate fluctuations in capital then some form of deposit account is your only option.

You strike me as the kind of person who would check their investment every day, and go into a downwards spiral if there is an occasional drop.

However, if you are interested in an S&S ISA: you would first have to understand investing. S&S ISAs are no more than a tax wrapper for investments. Anybody trying to sell you a read-made S&S ISA will do so because they know you have no idea how investments work and will charge you over the odds for a more than likely mediocre investment. So if you want to get into investments, get reading some books on investing.

But best perhaps to stick with savings such as in the 123. May be a cash ISA could also be a possible vehicle next tax year or the year after, when ISA interest rates might beat 123 interest rates again.

DragonQ

In simple terms, if the interest rate is higher than any savings accounts around, then do it ASAP. If it's not, then keep the money in the other savings account and deposit into the ISA as late as possible without missing out on that tax year's allowance.

dzug1

But there isn't an 'interest rate' for an S&S ISA.

There are dividends from the shares, which you either take or reinvest. They are variable - they can add up to more than interest rates on savings, the same, or less. Or even non-existent

DragonQ

Sorry, I assumed the OP meant cash ISA without reading it properly.

darentriskit

thankyou guys so much for your advice - I have given some thought to this - so the advice is if its higher rate in a bank account stash it there - if an ISA then there?
one thought did occur which i might be "pepared" to "risk" - to buy an investment vehicle -on a monthly drip - if thats how you word it , using the interest which the money makes each month ? - that way I would keep hold of the original 10K - which has always been my worry , but at least feel like I was at least making some attempt to make my pot work for me ? one of you suggested read some books on investing - can you suggest any good "starter" titles which might help me choose howIi might do this

anyway thankyou so much for your help and any further advice would be greatly appreciated

many thanks

planteria

if you invest your ISA allowance every year, then over time, by doing it (at least) annually you have drip-fed:T

jimjames

is there a "right" timing for putting a lump sum into an ISA ?

I tend to find when I have some money is the right time :beer: