Clients with maturing fixed rate Cash ISAs have seen a huge drop in their interest rates. From just over 2% interest down to below 0.5% for a standard ISA and only just over 1% for a new fixed 2 year deal, the rewards are slim.
Since Christmas a number of our clients are asking if there are any sensible, cautious alternative investments to their Cash ISAs that are currently paying around 0.25% annual rates of interest.
There are alternative types of ISAs available that are cautious and have a predicted rate of interest for this year above 5% (after policy charges) which is well above any Cash ISA interest rates.
Under recent ISA rule changes, you can now transfer out of Cash ISAs into Investment ISAs and then in the future when deposit interest rates increase, you have the option to transfer from your Investment ISA back into a Cash ISA.
This is a fantastic legislative change so you can benefit from potentially better growth rates with a cautious Investment ISA now and if you are traditionally a cash based saver, you will have the choice to revert back into a Cash ISA in the future.
At Sibbalds Financial Services, many of our clients are seeing the potential wisdom to make these changes to their Cash ISA savings.
With the Investment ISA, you can take a regular income on a monthly, quarterly, half-yearly or yearly basis. Often clients take an income level that is currently being created from the growth in the Investment ISAs.
At Sibbalds Financial Services, we are proud to be completely independent and so are able to consider all investments options that are available throughout the whole market. During an initial meeting we discuss and analyse all of your savings and investments in great detail, and your requirements for the future.