Noddy question about 'pending' SS ISA

ChilliBob

Hey guys,
I intend to open an SS ISA for this year and immediately when available for next year, at the full amount. I haven't decided *how* to use it though - i.e. which funds I'll go for. So as not to miss out on this year's allowance, should I:
1. Just put it in the best rate cash ISA anywhere, then transfer to iWeb (or another platform)
2. Open straight on iWeb and fund it but not invest it until I know where (I already have an iWeb account, doing nothing atm, as I understand it once open you can use it for whatever without extra charge)
I'm used to switching Cash ISA providers quite often but I have zero experience of how much hassle it is to to through step 1 above.. 

As I say, very noddy!

Alexland

If you are going to be using the full allowance for 2 tax years (£40k) then a fixed/capped price ISA sounds sensible however if you haven't decided which investments to buy or what your trade pattern will be (eg rebalancing, reinvestment of income, etc) then it's too early to pick a platform. You could go with iWeb but it's going to cost £100 to setup, they might not have the investments you want and in some circumstances their £5 trade cost might be more expensive than other platforms.

So if you cannot determine your investment strategy in the next couple of months (why not?) to decide which platform would be best then yes you could use a Cash ISA before the end of the tax year to preserve the allowance then transfer it to a S&S ISA later when you have made your platform selection.

ChilliBob

I already have iweb, decided to get in for 25 quid at the end of last year. I'd hope to have it settled, my investment strategy, in a couple of months, but I have other stuff I need to attend to as well (plus a toddler). 

Cool, so it's easy enough to transfer from a 'conventional' bank to the likes of iweb. That's good to know.

As a slight aside if I already have iweb, as I understand that means I can use it for SSISA and GIA for the £25 paid, as opposed having to pay for each service. 

Alexland

AAh yes ok well if you already got in at the old £25 rate you might as well just put it in their S&S ISA as the cash rate of interest you would get from a bank would be pretty negligible and it could avoid some hassle transferring it later if you use iWeb as your platform.

Sometimes in life you just have to get on with doing things that seem reasonably sensible and ride out the volatility. There is no best answer just lots of good enough answers. It really shouldn't take your another 3 months to decide how to invest the money and if it does you would likely do better with an IFA to help.

ChilliBob

Yeah I do struggle with that full stop tbh. I can research something to the obsessive level wanting to get the best option, sometimes at the cost of actuslly doing something!

I actually do quite enjoy the research though, which is good

Thanks for your reply, I'll just get cracking with iweb me thinks. One years ISA full capacity is fortunately a pretty small part of my pot so it's good to cut my teeth on.