ISA held as cash in a stocks and shares ISA

veronica46_2

ISA held as cash in a stocks and shares ISA
I have cash held in a stocks and shares ISA (which my ex put in my name and which is now mine) but know absolutely nothing about investing it in stocks/shares. I am wary of doing so, as i cannot afford to lose it.
Would it be better for me to withdraw it out of this type of ISA and put it into a cash ISA ?Because at the moment i am not getting anything like the interest I would get on a cash ISA......

debbie42

veronica46 wrote: »

Would it be better for me to withdraw it out of this type of ISA and put it into a cash ISA ?Because at the moment i am not getting anything like the interest I would get on a cash ISA......

You can't transfer from a S&S ISA into a cash ISA, so you'd be restricted to this year's £3600 allowance, if you haven't already used it?

Baldur

veronica46 wrote: »

Because at the moment i am not getting anything like the interest I would get on a cash ISA......

I believe (from memory) that the interest from cash held within a Stocks & Shares ISA is subject to tax, which is probably one reason why your interest is low in comparison with a Cash ISA.

As Debbie says, the most that you could withdraw and pay into a Cash ISA is £3,600 in this tax year, if you haven't already opened one.

debbie42

Baldur wrote: »

I believe (from memory) that the interest from cash held within a Stocks & Shares ISA is subject to tax, which is probably one reason why your interest is low in comparison with a Cash ISA.

The interest rate may be just very poor. Selftrade only pay 0.5% on balances up to 15K.

Baldur

debbie42 wrote: »

The interest rate may be just very poor. Selftrade only pay 0.5% on balances up to 15K.

Yes, that's why I said ".....which is probably one reason...."

veronica46_2

I am well aware, i cannot transfer to a cash ISA- that is why I used the word "withdraw: most advisedly. I am asking whether cashing in this S and S isa and buying a cash isa to start afresh, would be better for a novice at S and S.

veronica46_2

and yes the money held as cash in an S & S ISA is taxed at 20%.

Baldur

veronica46 wrote: »

I am well aware, i cannot transfer to a cash ISA- that is why I used the word "withdraw: most advisedly. I am asking whether cashing in this S and S isa and buying a cash isa to start afresh, would be better for a novice at S and S.

That's obviously your decision, Veronica.

My own inclination would probably be to do so, if unable or unwilling to explore the alternative options (stocks, shares, bonds, etc.) within the S&S ISA wrapper.

A low, taxed interest rate is a poor alternative to a reasonable untaxed one in a Cash ISA - possibly even to a reasonable taxed one in a variable or fixed-rate savings account depending on the current rate of interest which you are receiving.