ISA's

[Money Money Money]

Ladies and gentleman of the richer variety, and the financial geniuses.

I have been filling up an ISA for the last 4 years.

Interest over the last 4 months has gone £52, £43, £34, £20!

I'm not really looking forward to seeing it next month

Is it best to leave it in an ISA as it will go back up in the long run and can obviously only but £3k odd a year in, or is there a better option?

Won't need to access it for over a year maybe 2 depending on when the market bottoms out.

Thanks

 

[Money Money Money]

Cheers.

Red or Black it is then.

 

[DimPrawn]

For £3K a year WGAS. It's not worth worrying about is it?

Go on some nice family holidays with the money and forget about ISA's

 

[Ravello]

Depends a bit on your financial situation, but, if you've still got a mortgage I'd seriously consider taking the cash out of your ISA and sticking it in an offset - it's just as tax efficient and despite the recent rate cuts unless you're with Cheltenham and Gloucester then you'll still be paying more interest on your mortgage than you're receiving from your investment.

 

[Money Money Money]

Depends a bit on your financial situation, but, if you've still got a mortgage I'd seriously consider taking the cash out of your ISA and sticking it in an offset - it's just as tax efficient and despite the recent rate cuts unless you're with Cheltenham and Gloucester then you'll still be paying more interest on your mortgage than you're receiving from your investment.

No morgage.

 

[Mustang]

WGAS.

We need to start a thread just for abbreviations!!

 

[Ravello]

We need to start a thread just for abbreviations!!

Who Gives A S....

 

[cailin maith]

Who Gives A S....

Thanks Rav... I don't know what that was either

 

[Ravello]

No morgage.

Depends on your attitude to risk then really. Personally if I'd paid off the mortgage I'd be tempted to try and pick out some shares for the long term (in a maxi ISA), but evidently that could go horribly awry. Currency trading is even more risky unless you really know what you're doing, or, are incredibly lucky!

You could chuck the money in a Personal Pension which would give you the tax efficiencies, but again that's more long term since most funds won't start to appreciate until the conditions improve - by which time the interest rate on your ISA will likely start to grow again.

So all-in-all it's probably just as wise to keep it where it is and not read your next interest statement Either that or take it all out and spank it on some trader's Porsche that he's trying to get rid of on the cheap..

 

[expat]

You could chuck the money in a Personal Pension which would give you the tax efficiencies, but again that's more long term since most funds won't start to appreciate until the conditions improve - by which time the interest rate on your ISA will likely start to grow again.

Depends how old you are. For me in my 50s, no interest rate on the planet can compare to grossing-up 40% tax, I just don't have time for compounding to build up.