Gaming1 min ago
will be getting ISAs expired next June 2010
4 Answers
As I said above will be getting the above next year - they made no interest - very little anyway. I put them into a guaranteed ISA so hopefully I will get my own money back.
What is the next step I wont be spending them as I have more or less everything I want. Where could I put them safely - no ISAs please. Maybe under my pillow - I am 58
What is the next step I wont be spending them as I have more or less everything I want. Where could I put them safely - no ISAs please. Maybe under my pillow - I am 58
Answers
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For more on marking an answer as the "Best Answer", please visit our FAQ.I assume you are talking about Cash ISAs - not Stocks and Shares ISAs?
It is true that Cash ISAs earn very little interest just now - a product of the 0.5% Bank of England base rate. However some Cash ISA Bonds that are locked in for 12 months are currently paying 3.0%, and that doesn't seem a bad deal to me given the current rates on savings products in general.
I don't understand your comment about not expiring until June 2010 - unless you are already invested in a fixed rate bond. If this is true, it is pointless asking about what to do with them now - wait until about April 2010.
It is true that Cash ISAs earn very little interest just now - a product of the 0.5% Bank of England base rate. However some Cash ISA Bonds that are locked in for 12 months are currently paying 3.0%, and that doesn't seem a bad deal to me given the current rates on savings products in general.
I don't understand your comment about not expiring until June 2010 - unless you are already invested in a fixed rate bond. If this is true, it is pointless asking about what to do with them now - wait until about April 2010.
If you pay income tax (either from investments, pension or earned income) then you should consider re-investing the proceeds from your ISA in another one. This is because interest earned from ISAs is tax-free, which effectively increases the returns by 21% for basic rate tax payers.
Even if you are not a taxpayer ISAs tend to give s slightly better rate of return anyway than ordinary investments. If you can tie your ISA investment up for a fixed term you will receive a fixed guaranteed rate, which is likely to be a considerable improvement on a variable rate deal.
You can transfer the funds from your existing ISA (either all or part) to a new provider of your choice and those funds, together with any other contributions you may make (you can invest up to £5,100 in each financial year at the moment) will continue to earn tax-free interest. However, if you withdraw the proceeds of your existing ISA the tax free status of those funds is lost and you cannot re-invest them and enjoy tax free returns.
Even if you are not a taxpayer ISAs tend to give s slightly better rate of return anyway than ordinary investments. If you can tie your ISA investment up for a fixed term you will receive a fixed guaranteed rate, which is likely to be a considerable improvement on a variable rate deal.
You can transfer the funds from your existing ISA (either all or part) to a new provider of your choice and those funds, together with any other contributions you may make (you can invest up to £5,100 in each financial year at the moment) will continue to earn tax-free interest. However, if you withdraw the proceeds of your existing ISA the tax free status of those funds is lost and you cannot re-invest them and enjoy tax free returns.
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