Before COVID, I started investing the maximum amount of £4,000 into a L-ISA and received the £1,000 government top up. I've invested £16,000 and received £4,000 from the government.
It is likely that I will need to withdraw this money in 2-3 years (It was for retirement not for a house deposit as I am already a homeowner). I worked out that to get my £16k back without loosing any money or gaining any interest, I would need the balance to be around £21,400. For the past 2 years, it has floated around £20-£20.5k.
I am thinking of just taking the hit and withdrawing and putting the money into the NS&I 1 year 6.2% growth bonds. I know I will pay tax on this as I already have other savings, but if I need it in 2-3 years anyway, would I be best to just take the losses or would you keep it in the L-ISA and hope it rises? It has been pretty stagnant for 2 years.
Thanks :)