£7K in 2003 ISA to invest

princess_bambi

Hi,

Any help would be appreciated, I recently had an investment I made in a stocks and shares ISA fund in 2003 mature to a value of £10,500 approx. I am planning on spending about £3.5 on a car and wondering what to do with the rest - £7K. My pay has just gone up to £36K and with bonus' will probably mean that I am now a higher rate income tax payer. Does this mean that any savings I have will be taxed at 20% (that are not in an ISA)? I'm not sure what to do with the £7K as I do not wish it to lose its ISA status so I can't just deposit it in a bank account. I have been offered an investment by an IFA which is based on giving you 13% interest (Meteor Prima Growth 7) a year (26% year 2/39% year 3 etc) if the FTSE 100 goes up in that year and then it kicks you out (or continues until the market goes up) or if the market falls and doesn't recover by 6 years you lose some of your capital. Does anyone think this is advisable in the current market conditions? Any other ideas or suggestions would be appreciated?

Many thanks.

dunstonh

Does anyone think this is advisable in the current market conditions?

These versions are quite popular at the moment as they offer good potential whilst having good downside protection. Whilst the market is down from its high point its worth it. As it climbs back up it is less favourable. Plus the terms arent as good now as a few months back as the FTSE has gone up. You could get 16% earlier in the year compared to the 13% you see now.

princess_bambi

Thanks for your help Dunstonh, maybe I will look into some other products.

debbie42

princess_bambi wrote: »

My pay has just gone up to £36K and with bonus' will probably mean that I am now a higher rate income tax payer. Does this mean that any savings I have will be taxed at 20% (that are not in an ISA)?

Most banks automatically deduct the standard 20% at source for interest. If you are in the higher rate then you should declare it in your tax return. It's 40% for a higher rate tax payer.