What to do with money in cash isa?

nrbr

I have a cash ISA with about ~£30k earning 0.25% interest, and perhaps the same again elsewhere earning no interest. I intend to buy a property for the first time in the next 1-2 years. Any suggestions for where to put it? Just opened an NS&I Income bonds, seems like about the best interest you can get right now...

As interest will be within tax-free limit, it doesn't seem an issue to be transferring out of an ISA as I will probably spend the money before interest rates go up. Is that correct?

eskbanker

nrbr said:

I have a cash ISA with about ~£30k earning 0.25% interest, and perhaps the same again elsewhere earning no interest. I intend to buy a property for the first time in the next 1-2 years. Any suggestions for where to put it? Just opened an NS&I Income bonds, seems like about the best interest you can get right now...

As interest will be within tax-free limit, it doesn't seem an issue to be transferring out of an ISA as I will probably spend the money before interest rates go up. Is that correct?

The short answer is yes, but if you haven't owned a property before and are under 40 then the 25% bonus achievable from £4K/year in a Lifetime ISA will comfortably outperform interest earned elsewhere....

https://www.moneysavingexpert.com/savings/which-saving-account/
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/