A savings account for 6mths

Stilernin2

I was planning to withdraw money, for home improvements, from my stocks and shares ISA next year.  However, due to the 'noise' in the press at the moment re the possible effect of the budget, I am considering taking the cash out now and putting it in a savings account.  Today, I would be drawing approx 40% of the value.  If the value drops, I believe I would be drawing a higher percentage.    As a novice, am I correct in my thoughts?

Two questions then.
Is the press making 'noise' re a crash unnecessarily?
If i take the cash now, which is the best savings account for a few months?

Thanks everyone.

mebu60

1 - Probably but who knows and there's plenty more swirling around than just the UK Budget; also depends where you are invested and what you are invested in;
2 - Top Easy Access acs Ranked: Top of The Pots - **No Chat** — MoneySavingExpert Forum

If you have any further questions on 2 then post them in this thread not in the No Chat thread.

aroominyork

Yes, if the value drops you'll be drawing a higher percentage. The budget noise is irrelevant - if you need the cash in six months you should draw it now. Even if the budget noise said markets were going to soar, you should still draw it now - nobody knows what will happen to the stock market next week, let alone next year. 

Eyeful

1. Any money you will need within the next 5 years should be in either
(a) NS&I where you will be lending to the UK Government & will have 100% protection.
(b) Be in a Bank or Building Society savings account on the FSCS list, where it is protected up to £85,000.

2. You can check FSCS Savings Protection here:
https://www.fscs.org.uk/check/check-your-money-is-protected/

3. You can find the best savings account for your needs in various places such as:
https://moneyfactscompare.co.uk/savings-accounts/
https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

4. Have a good look through the MSE guide below:
https://www.moneysavingexpert.com/savings/safe-savings/

5. You should only be Investing providing you know you will not touch it for at least 10 years.

6. No one can foretell the future and the stock markets will suffer a major crash at some time.
However no one can tell you when that will happen. 

7. Your investments should let you sleep at night & not cause you to worry.
If you do worry, lower the amount of risk you are taking or even stop investing.
 

Alexland

Without knowing what you are invested in it's hard to comment but yes if it's anything risky then there's not a suitable timeframe for it to recover from a potential correction or crash which could happen anytime.

Depending on what S&S ISA you have you might just be able to switch a proportion into a safe money market fund for a similar return to a cash savings account without needing to setup a new account and transfer etc.

Sam_666

If you rely on trash tabloids for financial advice, your actions will be ...

Vienss

Yes, your logic is sound. If markets fall, withdrawing later means taking out a higher percentage of your ISA’s reduced value — so taking cash now locks in your current balance but also ends potential gains. The press often amplifies market “crash” fears; while volatility is normal, panic rarely pays off. Since you’ll need the money soon for home improvements, moving part into a high-interest easy-access savings account or a 3–6-month fixed rate account is sensible for stability and liquidity until you’re ready to spend.

Stilernin2

Thank you everyone for your helpful comments.  

LHW99

You should be able to transfer cash from your S&S ISA to a cash ISA, which maintains it's tax-free status, eg

https://www.moneyhelper.org.uk/en/savings/investing/stocks-and-shares-isas (see section on Transferring ISAs)

If you don't spend all the funds in the 6 months you could then always transfer back.