Maturing ISA, what next?

KirstyO

Hi everyone,


I have a v small ISA maturing in October (c£2100). I know things may change before then and reinvesting in an ISA might be the best thing to do, but I'm not holding out much hope.


I'm wondering what other options there are.


I'm hoping that even though this amount is small now, I can use it to start building a retirement fund to support my pension when I get there! (only 29 now)


With that in mind, I'm happy to tie it up for years if it will be worth it. I've lived without it for three years, am in a stable job for the moment and don't see me wanting to use it for anything in the short term.


I have very little idea of what exists outside of high street banking, so I'd love to hear more of what might be available when the time comes, so that I can do my research before then.


TIA


Kirsty

xylophone

You could take it out of the ISA and use high interest current accounts.

If you opened a Nationwide Flex direct and a TSB plus account, you could put £1050 in each then set up standing orders for the same day each month to send £1000 from NW to TSB and from TSB to NW.

Thus would also open up the possibility of using the TSB regular saver and the NW flex monthly saver.

At the end of the NW year, you could move the bulk of the cash from it to TSB ( so as to keep £2000 in that account) and open another high interest current account, Tesco perhaps, to hold the interest creamed off monthly from the TSB account.

You might consider switching the NW to obtain a switching bonus if one were available or you might wish to retain it in order to maintain the possibility of accessing the monthly saver etc.

You could consider all options at that time.

KirstyO

Thanks Xylophone, I'm already on the TSB plus with the regular saver, but worth keeping in mind others that might be available at the time. thanks.

jimjames

If you are 29 and really looking to use it for pension planning then cash isn't a great idea and certainly not a cash ISA. You'd be better off looking at either additional pension contributions or a S&S ISA which would still be accessible before retirement unlike a pension.

Flobberchops

Unless you're planning on putting it in a formal pension plan / SIPP, a S&S ISA would be a great place for it, particularly if you intend to leave it untouched for decades.