Having second thoughts

Sunshine_and_Roses

A few days ago my husband and I set up Santander fixed ISA for 2, 3 and 5 years. Mainly to take advantage of the e-voucher reward, but also as we are happy to lock away for a while.

I am now having second thoughts, as even though the fixed rate is good at 4.5% it would probably work better over 5 years in a S&S ISA, which we both have with T212.

I have contacted Santander asking about a cooling off period, they replied 14 days from account opening and abruptly ended the chat. I only opened the accounts within the last week so within the time frame.

Between us we have almost £100k in cash ISA which is was looking to transfer, also have PB as emergency fund.

Husband is retired, I work part time but looking to retire in next few years (before my retirement age) and use PB as my buffer before pensions.

Logic and looking at past results tell me to put it into S&S ISA. Tax free, should beat inflation etc. It's trying to change my mindset of growing up being taught to save pennies, put in bank and watch it grow.

Sorry for the early morning ramble, any advice? Or suggestions how to educate myself? Watched some RFS videos but not all.

Isthisforreal99

5 years is relatively short to be investing in S&S ISA. What is your attitude to risk - what would be your reaction be to a 7% drop as recently happened because of what happened in Iran? Of course there are 'safer' funds but even those had drops but more or less recovered.

If things like that would give you sleepless nights then maybe investing is not for you. Bottom line is you have to accept you may get less than you put in, unlikely if a low risk fund but possible.

Sunshine_and_Roses

I have £50k in S&S ISA already, with a mix of individual funds recommended to me and some All World that I have put in myself. Had these for about a year, seen them drop by a few thousand and gradually creeping back up. Was a bit nervous to start with but forced myself to think longer term and look at historical graphs.

Trying to look at the long term picture, if I keep these in for ten years then draw a percentage each year to supplement pensions. I have no children to leave this to, so want to enjoy life both now and when im older but not be leaving an inheritance for distant relatives!!

surreysaver

You can also bear in mind that you can close an ISA at any time (although likely to be some sort of financial penalty for doing so), as the legislation surrounding ISAs requires you to be able to do that

Isthisforreal99

Why have all your eggs in one basket, nothing stopping you going 50/50 on your split.

Personally I'd ditch the PB's given the notional return on them.

jimjames

It sounds like the S&S ISA makes sense. At least it's not tied up if you do decide you need access. With the fixed cash ISA you can get to it but will suffer interest penalty.

frankiesowner

My comment isn't about the suitability of the S&S ISA rather contacting Santander. I opened a fixed rate ISA a week ago and for the life of me I cannot find out how to pay into it. Their 'help' page doesn't actually help, here's no email contact, their autobot 'help' thingy is just about useless and I've spend a fair amount of my time I wont get back trying to get a call through to a human. Somehow I don't really think they want any custom?

andyhicks88

https://forums.moneysavingexpert.com/discussion/comment/81967103#Comment_81967103

Can you not see your account number and sort code? That's all you need to pay new money in via transfer just like any other savings account.

If you are on about a transfer, I also struggled to find that form but the link to it can be found on the current ISA offers page in the instructions section.

35har1old

https://forums.moneysavingexpert.com/discussion/comment/81967111#Comment_81967111

It's adjacent to the box that you used to open the ISAS but you only have 14 days from account opening to apply for transfers

If you haven't yet started the transfers you do not need to proceed if you have changed your mind

If you have split the £100000 equally you will only receive 3 x £100

If the transfers have started you do have 14 days cooling of period from account opening. You may run the risk that the money will end up out of the ISA wrapper due to the previous provider refusing the return of funds

badger09

It’s not clear from this thread how much of your existing cash ISA funds you’re planning to xfer into Santander FRISAs. Presumably at least £30k for 3 £50 vouchers.
In your previous thread you also mentioned having £20k of new money to pay into an ISA.
Have you considered investing that money into your S&S ISA instead of cancelling one of the transfers to Santander?

Sunshine_and_Roses

https://forums.moneysavingexpert.com/discussion/comment/81967995#Comment_81967995

Between us we have just over £100k. I have used some of this years new money to top up original accounts, so there is £50k in one, £25k in another, couple of £10k etc.

Great idea about splitting between S&S and cash. Think I was being too greedy chasing the vouchers rather than looking at the bigger picture.