should I pull money out of my Isa?

anoncol

ISA are surely not recommended any more are they? I don't see the point out them.

Archi_Bald

anoncol wrote: »

ISA are surely not recommended any more are they? I don't see the point out them.

S&S ISAs, and HTB ISAs for those eligible, most definitely still have a point, and a huge one, too. It's the bog-standard cash ISAs that have not been the best choice for most people for some time now.

MDMD

OP, what rate of tax do you pay? If you are HR then you will only get £500 interest allowance and any excess is taxed at 40%. The 6/5/4% accounts can generate over £1000 on their own, so this should be factored into the calculations (and the £60 charge for the 123 account)

Keep_pedalling

What are you long term plans for your savings? If you don't have any short term plans to spend it, I would certainly look at transfering the bulk of it into S&Ss ISAs.

Cash ISAs have not been attractive for a good number of years now, and all ours have been shifted to S&Ss ISAs long ago. High interest current accounts are fine for short term savings and holding emergency funds but personally I don't see them as a long term option.

darkidoe

Same problem I have here. But I think I might considering moving my loyalty cash ISA into a S&S ISA. I am filling in this year's allowance into the S&S ISA too, so it's going to be a big jump into the market.

redmalc

Chivas,they have not taken our Premier Starus away from us and it's now two years since we moved everything away from HSBC.
My salary goes into the bank and we spend on average 2K per month on the credit card but always pay it off without paying any interest

Eco_Miser

will-he-payitoff wrote: »

Yes and no, I would take it out of the isa but only open 1 123 account then spread the other 25-40k across other high interest current accounts. As the ISA limit is now above 15k it would only take you 1 year and 1 day to put it back into ISA's if and when the rates improve.

Since three annual allowances would be required, it would take a minimum of a year and two days, but that is a very specific 367 days unlikely to coincide with with an improvement in ISA rates - should that ever happen.

bigfreddiel

Chivas69 wrote: »

My wife and I each have around £45000 in a hsbc loyalty Isa! We are Premier Account customers! From January 2016 the rates are dropping to 1.3%.
I am now thinking our money would be better off split over different interest paying current accounts!
My concern though is that we've spent years building up this tax free amount and obviously we'd be unable to put it all back into an Isa straight away!
The new £1000 tax alowance from April on current account earnings will be a grest benefit though!
Even splitting £60000 between three Santander 123 accounts would generate more interest than leaving it in the Isas
thanks for any advice!

DO NOT CLOSE YOUR ISA!

As you say you have spent years building it up.
You cannot ever get those years back, and well done for building up £90k into a tax free status.

Move it to a S&S ISA. Don't be frightened. If there is one thing I regret it's not sticking with my S&S ISA in the years gone by, but I have for the past 10 yrs or so and its doing great.

Check out the passive investing thread on the monevator site.

Don't complicate your portfolio, stick to four or five etf's, or a couple of Lifestrategy and gilts funds.

Keep topping up each year, and in 20 years you will be millionaires.

Just stick with it, and reinvest divis or pick accumulation funds

Cheers fj

darkidoe

bigfreddiel wrote: »

DO NOT CLOSE YOUR ISA!

As you say you have spent years building it up.
You cannot ever get those years back, and well done for building up £90k into a tax free status.

Move it to a S&S ISA. Don't be frightened. If there is one thing I regret it's not sticking with my S&S ISA in the years gone by, but I have for the past 10 yrs or so and its doing great.

Check out the passive investing thread on the monevator site.

Don't complicate your portfolio, stick to four or five etf's, or a couple of Lifestrategy and gilts funds.

Keep topping up each year, and in 20 years you will be millionaires.

Just stick with it, and reinvest divis or pick accumulation funds

Cheers fj

Do you dump in one lump sum into the S&S ISA in one go each year or spread over the year? I am wary of jumping into the market with the old cash isa and this year's allowance all at once.

I think even with the full ISA allowance every year, it would take 25-30 years to become a millionaire. Would be in for a bumpy ride though.

2010

Once you come out of cash savings (ISA or not) you risk your capital with all other investments.
Investments can go DOWN as well as up.