Exhausted all options? Where to save my money?

MoneyMan01

Albermarle said:

Investing in an S&S ISA is for the long term ( minimum 10 years to have a good chance of a positive result ) as in the short and medium term investments can be volatile .

I've got around £60,000 in a cash ISA with the same building society (as I thought the only way you could pay into two ISA's in the same tax year was for it to be with the same building society, please correct me if I am wrong in saying that?).

You can not pay new money into more than one cash ISA per tax year . If you have you have broken the rules. The provider of the cash ISA is irrelevant .

Although current interest rates generally are not great , you can better than you have now. 

https://moneyfacts.co.uk/isa/

Or you could try Premium bonds for some of it.

https://www.nsandi.com/premium-bonds

You can pay into more than 1 ISA in the same tax year. Provided it’s with the same building society. You can’t with different banks but the key word is building society. As long as both ISA’s are under the same building society, you can pay into both. 

I think because of that I can’t take an ISA out elsewhere as then, like you say, I wouldn’t be able to pay into my HTB ISA.

Regarding Bonds, this is something I looked into but the “interest” prizes didn’t seem too enticing to me and whilst you *could* make more than 1.4% (or a couple of £25’s here and then) it appeared on average you would get just that, maybe a couple of £25’s, but at that point you may as well put your money in a guarenteed 1.2% savers. 

   

MoneyMan01

steampowered said:

The average return on stocks & shares ISA is 6-7% per year. That is the average sort of return generated by the major stock markets.

Some years will be better than that, other years will be loss making.

Thank you for the info. That’s very interesting. 

MoneyMan01

Is there anything else anyone would recommend based on the info I provided? 

Ideally looking to move the £60,000 somewhere soon (and get a minimum of 1.8% annual return) whilst being able to still pay into my HTB ISA. 

eskbanker

TheDarkKnight93 said:

Albermarle said:

I've got around £60,000 in a cash ISA with the same building society (as I thought the only way you could pay into two ISA's in the same tax year was for it to be with the same building society, please correct me if I am wrong in saying that?).

You can not pay new money into more than one cash ISA per tax year . If you have you have broken the rules. The provider of the cash ISA is irrelevant .

You can pay into more than 1 ISA in the same tax year. Provided it’s with the same building society. You can’t with different banks but the key word is building society. As long as both ISA’s are under the same building society, you can pay into both. 

'Building society' isn't the key word, the key phrase is 'providers who operate split ISAs'.  There is a very short list of such providers, who effectively lump multiple cash ISAs together as if they were one, thereby allowing concurrent funding of both - some of these are banks and some are building societies (but the majority of banks and building societies don't work this way): https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-0334234523-3

Albermarle

TheDarkKnight93 said:

steampowered said:

The average return on stocks & shares ISA is 6-7% per year. That is the average sort of return generated by the major stock markets.

Some years will be better than that, other years will be loss making.

Thank you for the info. That’s very interesting. 

Just do not forget about inflation . The real return is 6 to 7% minus inflation . Also apart from coronavirus the general outlook for the next 10 years was not so positive after a really good 10 years just passed ( for financial markets).
Long term investing is normally a good way forward but no level of  return is guaranteed.

MoneyMan01

Anything that someone can recommend based on the info I provided in my opening post? 

lhsecons

You could put the £60000 into NS&I. This currently pays 1.16%. Not a fortune but better than 0.05%. By the look of what you have, you would still be willow below the taxable limit for interest.
It may be worth drop feeding into other regular savers eg M&S, Lloyds Coventry Building Society.
Otherwise you are looking at stocks and share ISA.

MoneyMan01

lhsecons said:

You could put the £60000 into NS&I. This currently pays 1.16%. Not a fortune but better than 0.05%. By the look of what you have, you would still be willow below the taxable limit for interest.
It may be worth drop feeding into other regular savers eg M&S, Lloyds Coventry Building Society.
Otherwise you are looking at stocks and share ISA.

If I move my money out of my Cash ISA, will I receive any penalty's/fee's?

MoneyMan01

Also, even though my Cash ISA says I am getting 0.05%, it says my total gross interest is £741.19 for that account on my app for April 2019 - April 2020.

Surely 0.05% of £60,000 is £30?

lhsecons

Was it previously a much higher rate and has it recently dropped? Who is it with?