Columbia Threadneedle

EdGunn

We have a mini ISA with Columbia Threadneedle and wondered if it was worth keeping this open and continuing to invest in it. If not then what other options do we have? Are ISAs worth it or would we get a better return in a normal savings account? Thank you

masonic

"Mini ISAs" haven't existed since April 2008. Columbia Threadneedle do not offer cash ISAs, only S&S ISAs. Your return from your S&S ISA will depend largely on the investments you hold within it. In general, savings accounts are not a good home for money that you don't intend to access for 10+ years, with current interest rates where they are it seems rather likely the growth of cash savings will not keep up with inflation.

It wouldn't be meaningful to compare S&S ISAs with normal savings accounts, the better comparison would be a non-ISA general investment account. There is certainly a benefit to holding investments in an ISA - you won't have to consider capital gains tax when you sell investments or income tax on dividends, and you won't need to keep records or report anything concerning your investments to HMRC. Switching to a different provider could make sense if you want a greater choice of investment funds or lower charges. I couldn't see whether CT charges a custody fee or trading fee on its S&S ISA, so that might not be a consideration.

If you are considering selling your investments and moving to cash, then transferring from a S&S ISA to a cash ISA could make sense depending on the sum involved and how soon you intend to use the money, but in many cases a better after-tax return can be achieved in a normal savings account.