Isa, regular savers or fixed?

YummyPancake

I currently have an investment isa and a cash isa on really low rate.  The investment Isa is loosing money (interest not capital).  So I am looking into closing both and moving to a saving account with better rate - could be another isa, easy access or fixed. 

Mortgage is fixed rate for another 7 years at 2.5%, currently overpaying £130 a month so can stop the overpayment too.

any recommendations please?

thanks

phillw

You need to beat 2.5%, otherwise you might as well plow it all into your mortgage.

Stocks and shares is gambling, that is a decision only you can make. It could make back 10% tomorrow, or lose it all.

For cash ISA's you need to start looking at the market now, but its all potentially going to change based on Jeremy hunts announcement today and how the bond market reacts.

P1Fanatic

Fixed will be better rates but depends on how likely it is that you may need the money before the fix ends?

How is an investment / stocks & shares ISA losing interest?

For the overpayment money if you can find a higher rate of interest than your mortgage then you could redirect that money and use it and the interest earned to overpay at that time (bearing in mind that fixed rate mortgages usually only allow max of 10% overpayment per year).

ColdIron

YummyPancake said:

The investment Isa is loosing money (interest not capital).

Could you explain what you mean by this?

Albermarle

Stocks and shares is gambling, that is a decision only you can make. It could make back 10% tomorrow, or lose it all.

As long as you keep the stocks and shares long enough, it is not really gambling. Or it is gambling but with the odds  heavily loaded in your favour.

You are right that you could lose 10% tomorrow, but if you stick to mainstream diversified investments, the chance of losing it all is very small.