Transfer your Cash ISA to a Stocks & Shares ISA
It is now possible to transfer money held in your Cash ISA to a Stocks & Shares ISA and unlock the potential of your savings. Best of all, moving funds from Cash ISAs held in previous years, will not count towards your allowance this year. So you can transfer all your previous subscriptions into a Stocks & Shares ISA. Transfer your Cash ISA to the Killik & Co Stocks & Shares ISA.
It’s important to note that Cash ISAs are not risk free. Should the Cash ISA provider ever go into default, the Financial Services Compensation Scheme will only cover the first £35,000 of deposits held in any bank account.
You should also consider that, over the longer term, inflation can reduce the real rate of interest you receive on the cash in these ISAs.
Stocks & Shares ISAs are not risk free either, but offer a much wider range of investment choice. You could consider, Corporate Bonds, which are issued by companies and produce an annual amount which could exceed that paid by Cash ISAs, see the two examples below.
Barclays 6.875% Coupon Bond callable in 2015 and priced at 92.86p to give a gross redemption yield of 8.03%
HBOS 6.0884% Coupon Bond callable in 2015 and priced at 79.28p to give a gross redemption yield of 10.38%
(Correct as at 02 July 2008)Please refer to our Risks of Investments Guide for more information about Corporate Bonds and their risks.
ISAs could form a valuable part of your portfolio. For example, if a couple aged 40, invested their maximum Stocks & Shares ISA allowance of £7,200 every year, and assuming growth of just 8%, then, by the time of their retirement in 25 years, they could between them have a tax free portfolio worth over a million pounds. This would produce a tax free annual income of over £60,000 assuming a 6% yield.
You should be aware that when investing in stocks and shares the value of your ISA can go down as well as up and the growth rate described above may not be achievable or only achievable by taking greater risk in your investment selections.
Our Brokers can advise you on the most suitable investments for your aims and attitude to risk.
Consolidate your Stocks and Shares ISAs and we will pay all exit charges. You can also benefit from consolidating all your previous years subscriptions to Stocks & Shares ISAs. By transferring them to Killik & Co you will see all your investments in one report and your Personal Broker will be able to provide more informed advice to meet your investment objectives. And, we will pay ALL your exit charges.