Cash or share isa for this year?

[BrassicaBabe]

I have an existing managed share ISA I could add to. But wondering if this year I ought to do a cash ISA? I don't know which way to jump.

Consider the timescale for when you would access the money. If it is going to be used to buy something in the next few months, or maybe a year, then use Cash ISA or a savings account. S&S ISA is for longer term investing, 5+ years, ideally longer.

Do you have non-ISA cash savings using up all of your savings tax allowance?

If not, I would start there to make the most of better rates on offer at present.

At the end of the financial year you could then move the savings into a cash ISA. If you moved it into a new cash ISA in March, you could then transfer it to a new S&S ISA provider at the start of the next financial year to make the most of any financial bonus offers for opening new accounts. As it's a transfer this wouldn't affect your ISA allowance for 2024/25.
Once the bonus conditions with the new provider are satisfied and you've received the bonus, you could transfer it again to your existing managed S&S ISA to consolidate if you wish.

This would achieve 3 things - Benefits from higher interest rates at present for cash savings for 8 months until March; Keeps your ISA allowance for this year active; Makes the most of any bonuses which are usually on offer in April at the start of the new financial year.

Repeat the same process again next April if interest rates are still attractive, but use a fixed-rate high interest regular saver to filter your savings into for the year.

Thanks!

I haven't used any allowance yet for 2023-24. And I have available funds for the full allowance (cash or share) now.

I think (with interest rates being as they are) then the non isa cash allowance is maxed.

Re Timescales. That's an uncertain question. No plans to use it, or need it. But looking at other business opportunities. Also though, no opportunities have come our way!! 🤷‍♀️

@seekingasimplelife if I've followed you correctly...your suggesting a cash ISA now then maybe transferring to share ISA closer to the end of the tax year? Although you maybe have lost me at the bonus part 🤣

@BrassicaBabe Some investment platforms offer attractive bonuses at the start of the tax year in April for opening a new ISA, OR transferring an old ISA to them.

Save in a cash ISA for this tax year. Then in April after the new tax year starts, look for bonus offers that pop up. Transfer the 2023/24 Cash ISA to a new provider to receive an additional bonus, whilst still maintaining the 2024/25 ISA allowance.

Sounds like a plan! (Disclaimer for us all 🤣🤣 this isn't financial advice 🤣🤣) Some kind of plan is better than no plan at all isn't it!

Also wondering if I can get away with buying jewellery and convincing DH it's a long term investment in gold 🤣🤣

No, it's not financial advice - Your OP didn't request that as such - just a straightforward choice between two options.
This short-term suggestion simply signposts making the most of current interest rates and bonus opportunities, until you decide which option will suit you best.

😊 I was kidding.

I appreciate the insight 😊