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Should I cash in my ISA?

6 replies

sherbert · 07/02/2008 20:59

I have a cash ISA, which has lost around £700.00 in the stock market crash last month. I was planning to withdraw the capital (around £9389.) August of this year. My Question is would I be better off taking it out now, a putting it in my A&L direct saver account which pays interest of around 6%. I know i wouldn't have any of the tax advantages but i wouldn't loose any more money either.

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ruddynorah · 07/02/2008 21:06

no one can really answer that as no one knows for certain what will happen over the long term. interest rates have just gone down today again for example. over the long term ie decades, a stock market investment would, historically, do better than a high street interest paying cash account. it's up to you whether you ride the current climate out or not.

is it a stocks and shares ISA you have? a cash ISA isn't linked to the stock market, it just earns interest.

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sherbert · 07/02/2008 22:03

oh no, it is a stocks and shares ISA, (otherwise i wouldnt have lost would I?) Multimanager i think, ) I will need to withdraw the cash by say October at the latest, its not going to recover by then is it.

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hopefully · 08/02/2008 11:18

If you HAVE to withdraw the cash by October, I might inclined to take half out now, [put it in a savings account (or a cash ISA in April when yyou get your new allowance), and then take out a bit each month. That way if things improve you get to benefit a bit, and you don't make any enormous losses if they do. Which fund manager is the multi-manager prod with, if you don't mind me asking? Might be able to give you my tuppence worth on them...

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woodyrocks · 15/02/2008 19:20

Whatever you do, don't withdraw the cash out because you lose all tax benefits. What you should do is open an ISA such as the Icesave and get them to transfer the money over.

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DiscoDizzy · 15/02/2008 19:24

I agree with woody, if you transfer you won't lose your tax benefits.

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spudcounter · 18/02/2008 20:40

sorry to hijack...I have an ISA but now I've no idea whether it is cash or stocks and shares. I thought it was a cash isa but now I recall plumping for 'high risk' something or other....if it is a cash isa, is it okay in this climate then?