Unused 2013/14 S&S ISA allowance & NISA

robwild

Under the forthcoming NISA changes, if you have not used your 2013/14 stocks & shares ISA allowance, is it permissible to put it into a stocks & shares ‘cash park’ account (so foregoing 3 months interest on it) before the end of the tax year and then transfer it into a cash NISA post 1st July 2014?

westy22

You could - but check that there will be no exit or closure fees charged by the S&S provider when you want to move back into cash.

It would be only really worthwhile if you know that you will be maxing out the new NISA allowance for 14/15.

jimjames

westy22 wrote: »

You could - but check that there will be no exit or closure fees charged by the S&S provider when you want to move back into cash.

It would be only really worthwhile if you know that you will be maxing out the new NISA allowance for 14/15.

I'd say it is only worthwhile if you know you are maxing out the new ISA for the next 3 years so adding £45k (or £90k as a couple) If you are buying a house then long term ISA pot is irrelevant as you'll be using the money.

It seems totally pointless to me to fudge the system, get no interest for 5 months, potentially incur closure fees only to end up with a lower rate than you can get outside a cash ISA.

There seems to be an obsession with maximising the amount inside an ISA rather than what seems more sensible to me, of maximising the return you get.

robwild

I'm currently getting 2.8 - 4.89% net on my fixed rate ISAs, 3.5 - 3.75% gross on my regular savers and 3% gross on my current account. The last of my fixed rate bonds ended recently, so I have some cash to invest now. The best rate on any of my existing instant access accounts is 2% gross.


Where would you suggest I look next to get a better rate than an ISA going forwards?


Thanking you in anticipation of a reply.