Optimum Cash ISA vs S+S ISA Percentage?

BennyBrownBoy

Hi All,
Hope this is in the correct forum. Looking for some thoughts on the optimum split of cash ISAs vs S+S ISAs...
Just reviewing our savings position ahead of beginning of next tax year. We have approximately £191K in savings currently and this is split as follows:
Me - £68K in Cash ISA (1.2% interest in fixed term expiring end of this tax year)
Wife - £97K in Cash ISA (1.2% interest in fixed term expiring end of this tax year)
Me - £26K in S+S ISA (mostly in Vanguard Lifestrategy 60)
So approximately 14% of our total cash savings in S+S ISA which has outperformed the cash ISAs over the same period.
I believe we have too much of our savings in cash ISAs but am keen to hear what people believe to be a reasonable split between Cash and S+S ISAs? What should be our target and what factors determine this?
Not sure if it is relevant but we are both still working, 3-4 years from retirement at 60 and well provisioned for pensions with wife in DB scheme and me with 25 years DB scheme now deferred, plus approx £170K so far in DC scheme.
Thanks in advance for your thoughts.

afis1904

I presume that is all in an easy access cash ISA? 

Given the vast amount of money you got saved, I'd recommend you look into some fixed term savings account. As you will have a personal savings allowance of £1000 or £500 depending on your tax band you should have a look into non ISA accounts as they do pay a better rate, especially the fixed term ones.
As you do have a good pension I presume you won't need that money in the Vanguard ISA anytime soon so it might be a good idea to max that out for the tax year, but that's obviously your call and I don't know the risk you're willing to take.

Audaxer

BennyBrownBoy said:

Hi All,
Hope this is in the correct forum. Looking for some thoughts on the optimum split of cash ISAs vs S+S ISAs...
Just reviewing our savings position ahead of beginning of next tax year. We have approximately £191K in savings currently and this is split as follows:
Me - £68K in Cash ISA (1.2% interest in fixed term expiring end of this tax year)
Wife - £97K in Cash ISA (1.2% interest in fixed term expiring end of this tax year)
Me - £26K in S+S ISA (mostly in Vanguard Lifestrategy 60)
So approximately 14% of our total cash savings in S+S ISA which has outperformed the cash ISAs over the same period.
I believe we have too much of our savings in cash ISAs but am keen to hear what people believe to be a reasonable split between Cash and S+S ISAs? What should be our target and what factors determine this?
Not sure if it is relevant but we are both still working, 3-4 years from retirement at 60 and well provisioned for pensions with wife in DB scheme and me with 25 years DB scheme now deferred, plus approx £170K so far in DC scheme.
Thanks in advance for your thoughts.

If your income needs will be more than covered by your DB and DC pensions, the only reason to keep so much in cash savings, is that if to plan to have some major spending early in retirement, like a new car or house move etc. Otherwise you would be as well transferring a lot of the Cash ISA funds to the S&S ISA, increasing your investment in VLS60.