stocks & shares isa question

eskbanker

Sumselkb said:

Thanks for the replies.

So when my share save matures I can transfer the shares to a stocks and shares isa (but make sure that the ISA accepts the direct transfer of shares as not all isa providers offer this facility) and when they are inside the stocks and shares ISA I can then either just leave them or sell them and send the cash to my bank account immediately. Is that correct?
Yes, although you could also sell them within the S&S ISA and invest in something else, i.e. selling doesn't have to be followed by withdrawal.  Also worth noting that you can only shift up to £20K worth of shares (i.e. the annual ISA allowance) from sharesave into the ISA, although there's currently a loophole that may still be open by then....

Another thing is that my annual salary is a little over £10,000, but with overtime it is usually around £12,000 to £13,000 a year. so if I have any money in a savings account then I can have £1,000 in savings interest and a further £5,000 with starter for savings? 
Yes, although the starter rate £5K is actually used before the £1K PSA.

Keeping all the shares inside a stocks and shares isa seems risky as they can go down in value but the returns would be better long term I think if I have them for at least 10 years inside the s&s isa.
Holding individual shares is generally considered high risk, and all the more so if it's your employer, in that corporate failure would result in loss of job as well as investment loss.  As above, you could sell the shares and invest in something more diversified if you preferred.

Things can still change a lot over the next couple of years with budget changes, changes in interest rates etc, but I have a clearer idea now of how a stocks and shares isa works and what to do. Thanks.

Answers inline above....

Albermarle

A lot depends on what you want to do with the money eventually.
If you are planning to spend it in the next few years, you might be better off cashing the shares in and keeping the money in a savings account.
If you think you might not need it for many years, then probably best to do what the previous poster suggests - Cash the shares in and buy a more diversified investment fund. within the S&S ISA. ( many choices available)

Sumselkb

Thanks for the replies. When the time comes I will transfer the shares to a stocks and shares isa and then will look at selling the shares for a more diverse investment fund.