Are ISA's really worth it.

dunstonh

So Gadfium what has been the approx return on S&S ISA's in recent times please?

There are around 30,000 conventional investment options you can hold in an S&S ISA and a near infiniate number of variations.

Returns will be based on the assets used.

A broadly cautious to medium risk spread (which is where the average UK consumer is) would be around 5-6% a year average over the long term.

Aceace

I have a diversified portfolio of IFISAs that have returned an annualised 8% over the past two years. I'm glad that they were ISA wrapped.

GazzaBloom

72% gain in my S&S ISA so far this year. I put a lump sum in from last year's allowance in the middle of March at the bottom of the dip and split it 50/50 across 2 mutual funds: Baillie Gifford American B/Polar Capital Global Technology.

sausage_time

I have a Virgin cash ISA paying 2.0% fixed for another 2 years.   For me, worth it (for now).

ratechaser

Still a good option for cash holdings for additional rate taxpayers... although of course that's a fairly small niche!

Ifts

Some of the benefits of using the S&S ISA wrapper:

• No capital gains tax
• No tax on dividends
• No record keeping
• Can benefit from Additional Permitted Subscription

dogfonos

Is there a reason why most (if not all) banks and bldg. soc's have reduced the rate of interest paid from cash ISA accounts to well below that of their similar non-ISA account offerings?

garmeg

dogfonos said:

Is there a reason why most (if not all) banks and bldg. soc's have reduced the rate of interest paid from cash ISA accounts to well below that of their similar non-ISA account offerings?

Profiteering. There isn't that much extra admin with these accounts to call it anything else. Hence why I just use S&S ISAs as cash ISAs are not worth the bother frankly.

schiff

All my cash accounts are earning around 2% on average. I've got a few thousand in a Cash ISA that once earned a decent rate. Its rate now is 0.75% which is worth to me (grossed up) 0.9375%. Not far from the lowest of my cash accounts, but it wouldn't concern me to raid it rather than something earning a fair bit more. My current Cash ISA (area limited) in RS form pays 1.45% and I'm happy with that.

Steve182

Ifts said:

Some of the benefits of using the S&S ISA wrapper:

• No capital gains tax
• No tax on dividends
• No record keeping
• Can benefit from Additional Permitted Subscription

There are some exceptions for dividends. I had DGOC shares in an ISA. At the time DGOC was an AIM listing but has since moved to main London market.

It pays around 12% dividends. I was horrified to see that Mr trump deducted 15% from my first dividend payment! It's a US company and he does not recognise our ISAs as a tax shelter. Simple solution - move shares from ISA to SIPP where they are safe from Mr Trump!