Who are Cash ISA's useful for?

soulsaver

People who feel they've reached an age where they may feel they may not have enough longevity to recover from a 40/50% market crash?

People who believe they have enough exposure to the markets and a big wedge still left over?

People who (believe they) have accumulated just enough to be comfortable for the rest of their lives and don't want to be caught out by a market crash that takes them out of that zone?

People who were wise (lucky?) enough to 'go to cash' at the end of last year?

People who are naturally risk averse, and maybe don't perceive inflation as a risk? 

Daliah

For HR and AR tax payers, a cash ISA is a sensible place to keep money which is needed in the near or medium term, as the rates are better than those for non-ISA accounts, and their savings interest allowance is £500 or £0.

refluxer

Would views on Cash ISAs change if the government decided to withdraw the Personal Savings Allowance completely ? Is that a possibility ?

Marmaduke123

Cash ISAs are still useful for older people who feel they don't have time to ride out the ups snd downs of the stock market, and have substantial other non ISA savings near to or actually using up their savings interest allowance.

Thumbs_Up

soulsaver said:

People who feel they've reached an age where they may feel they may not have enough longevity to recover from a 40/50% market crash?

People who believe they have enough exposure to the markets and a big wedge still left over?

People who (believe they) have accumulated just enough to be comfortable for the rest of their lives and don't want to be caught out by a market crash that takes them out of that zone?

People who were wise (lucky?) enough to 'go to cash' at the end of last year?

People who are naturally risk averse, and maybe don't perceive inflation as a risk? 

Permit me to add one more. Single people who want to keep enough cash for their end-of-days but give nothing to the state. (Tricky I know)

MX5huggy

The number of Cash ISA’s vs S&S ISA’s opened is not a good guide to the popularity of the products. I think most S&S accounts would stick with the same provider year in year out. Whereas for cash ISA you have to keep chasing the best rates opening new accounts. 

As interest rates rise Cash ISA will come back to being a useful product for more and more people. 

xylophone

The transferable ISA allowance from a late spouse may make quite a difference to the tax position of a widow/er.

Descrabled

Fixed Rate and Access

The fixed rate ISAs have good interest rate, not as good as non ISAs, but they all allow access to the savings in an emergency.

Posts are seen, on this forum, where savers want access to their fixed rate non ISA savings and are upset when informed that this money will only be available at the end of the fixed term. Fixed rate ISAs can always be closed with a penelty.

I have to admit that the taxable interest I receive has exceeded the savings allowance, resulting in a reduction in my tax free allowance for the last few years.

I make extensive use of both 1, 2, and 3 year ISAs as well as flexible ISAs.

foshank

refluxer said:

Would views on Cash ISAs change if the government decided to withdraw the Personal Savings Allowance completely ? Is that a possibility ?

This was the main reason I was reluctant to reduce my Cash ISA holding. I was not convinced that the government would not reduce or cancel the PSA to help pay for the costs of the pandemic. But since reading the many posts on the forum regarding the increasing Regular Savings rates/ Fixed Savings Rates I am now gradually moving funds away from the Cash ISA.

Type_45

Cash ISAs are useful for people who want to stay in cash rather than participate in a downwards market.


However:  Wouldn't short-term bonds be a better option?