Short term ISA to hold cash a few months?

Mr.Boy

I am freeing a large portion of my stocks and shares ISA because I will need the cash on hand in the next 1-6 months. About £100k.
At that level, the missed interest is quite significant letting it sit about so I'm thinking to transfer it into cash ISA(s). I know some pay annually and others monthly but I am not sure how to tell which (if any) will still pay interest if the cash is only there, say, 3 months.

It doesn't have to be an ISA because the money will be spent on property, I don't care about losing the ISA allowance just how easily and effectively I can put the cash somewhere to earn a bit in the interim.

Thanks for any recommendations or tips generally.

dharm999

Why not put the money in a money market funds within your S&S ISA, not quite the same as cash, but would do the job

Mr.Boy

dharm999 said:

Why not put the money in a money market funds within your S&S ISA, not quite the same as cash, but would do the job

we did talk about that but I'm not sure how they work. Did look into Gilts as well.

mebu60

Mr.Boy said:

I am freeing a large portion of my stocks and shares ISA because I will need the cash on hand in the next 1-6 months. About £100k.
At that level, the missed interest is quite significant letting it sit about so I'm thinking to transfer it into cash ISA(s). I know some pay annually and others monthly but I am not sure how to tell which (if any) will still pay interest if the cash is only there, say, 3 months.

It doesn't have to be an ISA because the money will be spent on property, I don't care about losing the ISA allowance just how easily and effectively I can put the cash somewhere to earn a bit in the interim.

Thanks for any recommendations or tips generally.

Doesn't matter whether the interest is monthly or annual, assuming it's easy access rather than a fixed term then when you close the Cash ISA to withdraw the cash the interest will be paid to date at that time. If you leave the ISA to continue with a minimal balance the interest will be paid in accordance with the Ts&Cs.

Mr.Boy

mebu60 said:

Mr.Boy said:

I am freeing a large portion of my stocks and shares ISA because I will need the cash on hand in the next 1-6 months. About £100k.
At that level, the missed interest is quite significant letting it sit about so I'm thinking to transfer it into cash ISA(s). I know some pay annually and others monthly but I am not sure how to tell which (if any) will still pay interest if the cash is only there, say, 3 months.

It doesn't have to be an ISA because the money will be spent on property, I don't care about losing the ISA allowance just how easily and effectively I can put the cash somewhere to earn a bit in the interim.

Thanks for any recommendations or tips generally.

Doesn't matter whether the interest is monthly or annual, assuming it's easy access rather than a fixed term then when you close the Cash ISA to withdraw the cash the interest will be paid to date at that time. If you leave the ISA to continue with a minimal balance the interest will be paid in accordance with the Ts&Cs.

Thanks this all looks fairly simple then. Appears the best option is the simplest one.. the MoneyBox product looks great.

refluxer

Mr.Boy said:

Thanks this all looks fairly simple then. Appears the best option is the simplest one.. the MoneyBox product looks great.

Just be sure not to put the full £100k into any one financial institution. 

When looking at the ISA providers currently at the top of the Easy Access Cash ISA tables (the likes of Plum, Moneybox and Trading 212 etc), be sure to read their T&C's carefully as they all have various quirks you'll need to be aware of. IIRC, interest due but not actually credited isn't covered by FSCS  protection for one of them, for example.