Where to keep funds in short term

20122013

I would like to know what to do with my S&S ISA funds while I think about how to reinvested them for up to a month? As not earning much interests in ii I was going to put it in a Cash ISA and transferring back into ii. But I have 3 transfer into ii and 3+ weeks have passed and the transfer out providers have said they have not received ii's request etc so I think may be leave in the ii account at least the fund is there?

InvesterJones

If you don't earn interest as cash then you can buy short term money market funds which pretty much track SONIA (which is close to the bank of england base rate) and are very liquid, until you decide what to invest in.

fwor

How much interest do you expect to be paid for cash while it is with ii? I would expect that if the period is "up to a month" you would need to be moving significant amounts of money for it to be worthwhile. I haven't done any "back of a fag packet" calculations, but my guess is that if you're moving any less than 10's of thousands it's not going to be worth the effort.

Emmia

https://forums.moneysavingexpert.com/discussion/6665754/where-to-keep-funds-in-short-term

You don't really earn interest on a S&S ISA as the money is invested in the stock market and similar which will have a variable rate of return.

It's possible you're in a low risk investment arrangement, but that also probably means lower growth... Perhaps you'd prefer (have the appetite) for something a little racier (medium risk) for your ISA noting that the value might fall as well as rise.

fwor

https://forums.moneysavingexpert.com/discussion/comment/81977849#Comment_81977849

Agreed, the OP doesn't specifically say, but I think they mean that they have a cash balance in their ISA account at ii.

If so, it does (I'm fairly sure) pay interest, but figuring out how much interest you'll get paid does not seem to be easy!

aroominyork

These are ii's cash balance rates https://www.ii.co.uk/investing-with-ii/cash-interest-rates

The most popular short term money market fund is Royal London's https://www.ii.co.uk/funds/royal-london-short-term-money-mkt-y-acc/B8XYYQ8

20122013

As the sell of my funds have yet to complete and ii will be move it to my CASH (ISA) account until it is reinvested. I wonder whether there is a better rate than ii's as it seem low as the amount will be approximately £xxxx.

Short term money market funds?

masonic

You could probably achieve close to 4% in STMMF. If that's the amount of cash you will be carrying, it might be worth using more than one. Royal London's is a good performer, Vanguard has one, and then there are the ETFs CSH2, QUID, etc

You also have the option of short dated individual gilts, such as T27A or TG27, depending on how long you need, which if held to maturity would return around 4.2%.

Emmia

Removed quoted post as requested by the OP.

You can only move £20k into your cash ISA... If you liquidate your S&S ISA and put it into a savings account you'll be getting taxed on the interest generated in that account.

Alternatively you can sell your investments in the S&S ISA so it's all cash, and then do a transfer to a cash ISA.

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81977885#Comment_81977885

I've got a S&S ISA with Moneybox, that is quite transparent that it pays 2.5% on uninvested cash - not the best rate, but that's fine as I don't have any cash in it.

HSBC on the other hand pays 0.00% on uninvested cash (I have a separate S&S ISA with them).

plumb1_2

As of April vanguard money market fund is 3.61% , with a 0.12% charge, so overall 3.9%,and Royal London slightly better.

I have both for pension and isa funds. Both low risk.