S+S ISA query - house savings

Mick70

Morning all and happy new year .

I opened a S+S ISA about 3 year ago for my daughter to help towards her deposit for when she comes to get her first house.  The past 6 months she has started work and is paying £200pm into a LISA  (so not quite maxing it out as can pay in 4k pa).
Anyway the S+S isa , is £30k, had been doing poorly and at what point was -8% , it is now suddenly 2.5% up, not a great deal but at least it is positive whereby before i was regretting having got one when it was so low.
It is likely she will need access to this in 3 years time i suspect (its hard to know).
My query is , should i sell the investments/ cash in and plough it into an ISA so that at least I know the savings earmarked for her deposit are now safe ?

many thanks for any advice

Mick

Mark_d

Having the money in cash is certainly safest but it has the lowest potential growth.  If your daughter needs the roughly £30k in 2-3 years then cash is a good, and possibly simplest, option.  Personally I'd be tempted to move the investment to a money market fund:
https://www.hl.co.uk/news/articles/money-market-funds-what-are-they-and-what-you-need-to-know

Keep_pedalling

Is the ISA in your name or hers? I agree with Mark, better in cash than S&S for a three year timescale. She should look at opening a LISA and top that up each year to get a 25% uplift from the government for her deposit. £4000 can be added to a LISA each year. 

Mick70

its in her name as legally knew it had to be , but basically its money ive saved for her
its amounted to £30k 
she has opened a LISA since starting work and pays in herself £200pm (2400pa - leaves only an additional £1600 you could pay in anyway).

the s+s ISA is 60% equity and as say at one point was 8% down for quite some time , now it finally has a positive return I'm wary about taking risks as it will be far and away the bulk of any deposit she could put on a first house.

So i am thinking , cash it in now, get the £30k 
put half into a fixed normal savings acc  -  i think you can get 5% or similar foir 2 year period.
and half into an ISA so that the interest isnt taxed  - and drip  £1600 into the LISA ?

xylophone

My query is , should i sell 

its in her name as legally knew it had to be

Do you mean that you are managing this ISA as though you were your daughter?

The provider is unaware of this?

Has any contribution been made in this tax year?

Your daughter is aware of this ISA?

Mick70

im managing it as it is money we have put aside to help her , but its all in her name, yes she is fully aware of it etc 

Albermarle

Mick70 said:

im managing it as it is money we have put aside to help her , but its all in her name, yes she is fully aware of it etc 

I do not disagree with the previous comments, but to play devils advocate how would you/she feel if that £30K would have grown to £40K over the next 3 to 5 years if left in the S&S ISA ?
I am a bet hedger so would probably leave some in the S&S ISA.

Mick70

Thank you for sharing time to reply, appreciate it 

Mick

Mick70

Albermarle said:

Mick70 said:

im managing it as it is money we have put aside to help her , but its all in her name, yes she is fully aware of it etc 

I do not disagree with the previous comments, but to play devils advocate how would you/she feel if that £30K would have grown to £40K over the next 3 to 5 years if left in the S&S ISA ?
I am a bet hedger so would probably leave some in the S&S ISA.

decided to do this , value is £30k
have instructed to sell half, £15k , and will put that into a fixed savings @5%.

will decide over following weeks whether to transfer the remaining £15k out into a cash isa or just leave it in the s&s isa