current acc savings or ISA savings

bigadaj

chanders wrote: »

Although stock and shares Hargreaves landsdown has some managed portfolios that you could consider

Poor choice and very expensive.

bigadaj

Holmesy999 wrote: »

Can a S&S ISA be used to invest in something that is almost as safe as a current account to take advantage of additional tax benefits on top? Surely there is some fund available that can be considered a safe bet and pays better than a cash isa??

Not really, the world has gone to extremes and to get much of a return you need to accept risk.

Government bonds are safer than cash but they frequently cost money to hold, probably the best thing to do is spread risk by buying a multi asset fund and hold onto it for a longer period of time which will be unlikely to lose money.

teddysmum

bigadaj wrote: »

Why are people so scared of exceeding the psa?

It's better to get 3% and get taxed at 40% than sit in a cash isa at 1% surely?

I was thinking the same. After all, unless you are a very low earner, until now there has been no allowance to worry about exceeding. The allowance is a bonus.


Even 2% taxed at 40% (making it 1.2%) , but with instant penalty free access, is better than 1% with strings.

bxboards

teddysmum wrote: »

Even 2% taxed at 40% (making it 1.2%) , but with instant penalty free access, is better than 1% with strings.

Forget the tax - just over 2 weeks ago you could get fixed rate ISAs at 2.2% or 2%. Nationwide for one, Halifax was another.

I opened a 2% Nationwide fixed rate ISA at the end of July draining one of my Santander123 accounts. That account is now going to pay 1.5%. effectively 1.3 ish after the 60 quid fees. The ISA is locked in at 2%.

People I think are so fixated on current accounts and the PSA limit they ignored the ISA deals that were available. Halifax and Nationwide both offered 2%. A bank I never heard of were offering 2.2%. The tax free part of the ISA was a bonus. 2% 2 weeks ago didn't look good. It does now.

There are still fixed rate ISAs available that pay more interest than what the 123 account will be paying shortly, so again as I said in an earlier post, ISAs are still very valuable, purely as you could get some good (in this climate) fixed rates.