Cost effectiveness of putting cash into H&L S&S ISA

wombat42_2

I think that as cash put into H&L S&S ISA is tax free the rate is comparible with, say, ICICI at 6.41% before tax. Would you consider parking some cash with H&L S&S ISA even if you were not sure you would ever convert the cash to S&S ?

RayWolfe

Are you sure H-L pay that sort of rate?
The only reason to keep cash with a S&S provider is if you sold but wish to keep the money in an ISA until you were ready to invest again.

Aegis

wombat42 wrote: »

I think that as cash put into H&L S&S ISA is tax free the rate is comparible with, say, ICICI at 6.41% before tax. Would you consider parking some cash with H&L S&S ISA even if you were not sure you would ever convert the cash to S&S ?

The cash held on account isn't tax free according to their website:

http://www.h-l.co.uk/our_services/interest_rates_isa.hl

It's awful for saving cash, so I would suggest not bothering!

cloud_dog

wombat42 wrote: »

I think that as cash put into H&L S&S ISA is tax free the rate is comparible with, say, ICICI at 6.41% before tax. Would you consider parking some cash with H&L S&S ISA even if you were not sure you would ever convert the cash to S&S ?

Oh dear.............. Wombie, Wombie........ Cash held in any Maxi / S&S ISA is taxed, as per government regs. The main advantage is that you can switch between S&S and cash (like now, for instance).

cloud_dog

dunstonh

Index linked and other bonds look like the best defensive area at the moment.

purch

The Fixed Income markets are going to crash pretty soon

cheerfulcat

Couldn't agree more, purch. Corporate bonds are a disaster waiting to happen IMO.

Wombat, gilts are a fair bet in a S&S ISA - ISA-eligible gilts are yielding a little over 4%. Not a substitute for a cash ISA though.