ISA Funds Holding Cash in Money Market via HL Platform v Regular Bank ISA

knittingnanny1102

I am wondering if anyone has any opinions on pros and cons of  holding cash in a standard bank ISA or investing it in a stocks and shares ISA with HL and then taking out an investment with something like the Royal London Short Term Money Market.  
I was just wondering if the Stocks and shares option might give more flexibility providing a short term aprox 5% return but would allow investment into stocks if conditions changed.  

I know my question is a bit vague but any comments appreciated

ColdIron

It's probably worth noting that you'll have to factor in HL's 0.45% fee which you won't for cash

masonic

Using a S&S ISA and STMM fund is a low maintenance option. If you intended to invest the money in higher risk options later then it would be the way to go. It is also a good option for a mixed asset portfolio as rebalancing would be straightforward. 

It is not usually a good idea to try to time the market in and out of stocks, but people often do wish to derisk around various life events.

Beddie

Sounds fine, but remember you could still put it in a cash ISA and transfer it to S&S in the the future. Just another option. 
Personally, if you're leaving it in there for the long term, forget STMM and go straight into an investment, something not too risky such as HSBC global strategy balanced perhaps? Consider investing monthly if a lump sum feels too much. Do whatever feels right for you.