What to do with mon...
 

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[Closed] What to do with money in ISA?

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 myti
Posts: 1815
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Topic starter
 

My 2 year ISA matured and rates for new ones are rubbish. I was considering putting some in Zopa peer to peer lending but with the financial uncertainty at the moment I'm not sure as if we have a big recession more people will default on loans.

I have a mortgage with no penalty of over repayment so should I just use all my ISA to overpay? It's at 2.49%. I have other savings to fall back on if something bad happened and no dependants or need to buy anything big in the near future. I think it makes sense but just feels odd to not have an ISA.


 
Posted : 07/07/2016 2:59 pm
Posts: 3723
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Just overpay the mortgage, simples


 
Posted : 07/07/2016 3:00 pm
Posts: 20561
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May I be the first to suggest Coke & Hookers?


 
Posted : 07/07/2016 3:01 pm
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Rate in ISA is crap. Rate in mortgage is 2.49%. You have other funds.

Personally I'd just stick it in the mortgage.


 
Posted : 07/07/2016 3:04 pm
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Over payments make more sense than low interest ISA's if you can afford it to not be part of an emergency fund.


 
Posted : 07/07/2016 3:05 pm
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Are your other savings doing better? I keep mine as a cash reserve just in case. Even though the rates are poor they may go up (though that is less likely now) and it's as good a place as any for quick access. My stocks isa does much better but that is for the long term. Worth putting a little into p2p lending as the returns are good but as you say it could be risky but not too bad as part of a spread of investments


 
Posted : 07/07/2016 3:08 pm
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If you take it out of the ISA you'll lose that ISA allowance which may not matter to you. Get 3% at Santander 123 - you can earn £500 or £1000 tax free depending on your tax threshold now.


 
Posted : 07/07/2016 3:10 pm
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I have other savings to fall back on if something bad happened and no dependants or need to buy anything big in the near future.

My god what's wrong with you man, you must need a new bike surely?


 
Posted : 07/07/2016 3:11 pm
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Stocks and shares ISA instead of a cash one. If it's a decently managed fund should get you better than 2.5%.


 
Posted : 07/07/2016 3:14 pm
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A risky time to start doing that.


 
Posted : 07/07/2016 3:26 pm
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May I be the first to suggest Coke & Hookers?

Excellent choice, sir.


 
Posted : 07/07/2016 3:28 pm
Posts: 10980
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Buy an expensive bike? It's as good an investment as an ISA because it will keep you fit and healthy, being such a joy to ride.

I'll be out on mine this evening, happy the money isn't in a poxy ISA.


 
Posted : 07/07/2016 3:57 pm
 myti
Posts: 1815
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Topic starter
 

Got 2 nice bikes already, hookers (or more accurately gigolos don't appeal and coke doesn't mix well with riding bikes! Got the santander 123 account earning 3% on the rest of the savings so think I will just over pay now and see how financial circumstances pan out and might do some peer to peer in the future.


 
Posted : 07/07/2016 5:10 pm

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