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

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wombat42_2
wombat42_2 Posts: 1,312 Forumite
in ISAs & tax-free savings
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 ?

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  • RayWolfe
    RayWolfe Posts: 3,045 Forumite
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    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
    Aegis Posts: 5,688 Forumite
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    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!
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • cloud_dog
    cloud_dog Posts: 6,055 Forumite
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    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
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • dunstonh
    dunstonh Posts: 116,468 Forumite
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    Index linked and other bonds look like the best defensive area at the moment.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • purch
    purch Posts: 9,865 Forumite
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    The Fixed Income markets are going to crash pretty soon
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • cheerfulcat
    cheerfulcat Posts: 3,340 Forumite
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    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.
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