Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

Financial New Year’s Resolution #2 – sort out those cash ISA accounts

emergency-fundWhen you have worked so hard for your money surely it should be working hard for you.

The average Cash ISA interest rate continues to fall and now pays just 0.52%. Hopefully you will be doing better than the average but even the best rates are pitiful. If all you have left in your Cash ISA is your emergency fund then I suggest going to one of the on-line sites such as Money Saving Expert and moving to the best “no notice” accounts. The interest rates may be low but it is just too risky to expose your emergency money to funds that fluctuate both upwards and downwards. It is a basic law of nature that when you want the money it will be a bad time to cash in!!

However if you have medium/long term savings in your ISA then you can and should certainly do better. For example the FTSE100 Index currently yields around 4%pa. Capital values will fluctuate both upwards and downwards but if you can live with that stock market linked funds have historically done better than cash. It is straight forward to transfer. Do not cash in and then reinvest as you may lose valuable tax benefits.

How do you choose which provider and which funds?

Using a regulated financial adviser could be expensive with ongoing costs which will eat into your profits. A better answer may be to use one of the online platforms such as Hargreaves Lansdown. There is no transfer charge and there will be plenty of guidance on how to select funds which meet your objectives. Be a little wary of the Multi Manager Funds which they tend to promote – they are very popular as they take all the responsibility of fund choice away from you but only at an additional cost of 0.75% pa – again eating into your profits.

If you would like some personal guidance just text Cash ISA to 07770 575122 and I will get back to you.


This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

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