Saving: Cash ISA vs S&S ISA what split do you hold?

jabbahut40

Hi All,


I have approx. £40K in a S&S ISA portfolio and another £40K in a cash ISA on a fixed rate of 1.6% that is due finish in April 2016.


I've been thinking that I am holding too much in cash and could do better transferring a chuck of this into my S&S ISA? I don't want to put this money into a pension as I want to keep access to it over the next 10 years.


What percentages of S&S ISA vs Cash ISA do people hold? My 50/50 split does not feel right.


Comments welcomed.


Jabba

anselld

100/0 - can't see any point in cash ISA, better interest rates outside.

george4064

100% in S&S ISA.

Cash ISA rates are far too poor for me to even consider them.

Kendall80

No cash ISA here - as stated above the rates are too low. I keep my uninvested cash in the usual high interest current accounts. I'm probably 50:50 at the moment. Not through any strategy just monthly drip feeding into S&S ISA.

banksofthe_mersey

s and s way too risky for me, whats actually gauranteed with these?

Eco_Miser

100/0 since my last 5% cash ISA matured.
Unless

1. you can't open high interest accounts, or
2. you have a large expenditure planned in the next five years, or
3. you are likely to be a 45% tax payer

I can't see the point in ordinary cash ISAs, given the low interest rates, the £1000/£500 Savings Interest Allowance and the ability to add £15k, (£20 from April 2017) a year to an ISA should the rates ever become competitive.

banksofthe_mersey

eco? so 5% is certain?

Eco_Miser

That 5% ISA I mentioned was certain for 5 years, but not available for new money for 99% of the time it was held.

5% is certain in a TSB Plus or Nationwide FlexDirect and their respective savers.

A 5% coupon is also certain on some Gilts (but their current price is too expensive).

Other than that it's expectations rather than guarantees. What guarantees do Betfair give you?

banksofthe_mersey

betfair? betfair is a betting account mate..im with santander just signed up x 3.

banksofthe_mersey

and the max amount in tsb plus an nationwide? i wont no risk at all because ive seen too mnay people have their fingers burnt,

Eco_Miser

banksofthe_mersey wrote: »

betfair? betfair is a betting account mate..im with santander just signed up x 3.

Precisely.

You're happy to gamble at odds guaranteed to be against you, as Betfair have to make their money from the punters, but are demanding guarantees on investments which actually make money for everyone involved. The amount of money depends on how well the businesses, like Apple, Microsoft, Google, Shell, Lloyds, Tesco, ARM do each year.