Leave money in Stocks & Shares?

pieboy100

Hi

I have a Mini cash ISA with one provider (£3000 allowance still for this tax year) and a Stocks and shares ISA with another (£4500).

I've just moved house so my regular payments into the stocks and shares is now the minimum amount (£20). Due to Cash ISA being interest and stocks & shares being growth, I'm wondering whether I would save/make more money by transferring £3000 from the stocks and shares ISA into the mini cash ISA? If so, when would you recommend I do that?

Any advice would be appreciated.

Thanks

Stuart

jem16

You can't transfer money from a S&S ISA and put it in a cash ISA unless you mean actually withdraw it from the S&S ISA by cashing it in.

In the medium to long term - i.e. more than 5 years the S%S ISA should outperform the cash ISA although that may depend on what funds you have invested your S&S ISA in.

Browntrout_2

pieboy100 wrote: »

Hi

I have a Mini cash ISA with one provider (£3000 allowance still for this tax year) and a Stocks and shares ISA with another (£4500).

I've just moved house so my regular payments into the stocks and shares is now the minimum amount (£20). Due to Cash ISA being interest and stocks & shares being growth, I'm wondering whether I would save/make more money by transferring £3000 from the stocks and shares ISA into the mini cash ISA? If so, when would you recommend I do that?

Any advice would be appreciated.

Thanks

Stuart

I would view the Cash ISA as being short to medium term cash. That is something you will eventually withdraw and spend, whether next year or sometime in future when the need arises.

The S&S ISA would be medium to long term. Maybe to fund higher education fees or even something you may never withdraw and spend. Use as growth fund when you are young and then change funds to income to supplement a pension in later years.

So if you are looking to spend soon, then yes possibly best close the S&S ISA and move into cash. However if you took advice to invest in the S&S ISA for the long term then check with the IFA that this is still a good investment. Presumably invested this tax year.

pieboy100

So it seems that unless I plan to save money for the long term (which at 28, I'm not looking to yet), I should withdraw £3000 from S & S and put it into Cash ISA?

Just out of interest as well, though interest is paid yearly on a cash ISA, does that mean for best return the £3000 should be put in right at the start of the tax year, or does it not make a difference?

Stuart

jem16

pieboy100 wrote: »

Just out of interest as well, though interest is paid yearly on a cash ISA, does that mean for best return the £3000 should be put in right at the start of the tax year, or does it not make a difference?

Stuart

Yes it makes a big difference. You only get interest for the time your money is in the account so if it's in for 1 year as opposed to one day you will get £189 as opposed to 52p. ( assuming £3k at 6.3%)

Just to add, although interest is credited yearly it is calculated daily.