I currently have a Barclays issue 1 ISA, with around £8000 in it. I opened it in August 2014, and it pays 1.29% AER/1.28% tax free pa. At the time of opening it, I hadn't researched investments and savings, and just wanted a place that wasn't my current account to park my money, so put it there.

Since then, I've done reading around, and I'm thinking of transferring the ISA to nutmeg.com, as I feel confident enough to "dip my toes" into investing, so a managed portfolio seems ideal.

I suppose that it's worth noting that the £8000 represents my savings right now (Only 20, and going through university), so should I split it up possibly? Leave £2000 in the barclays ISA and transfer £6000 to a nutmeg account?

Is it worth leaving the Barclays account and transferring it to a Nutmeg one?

  • 1
    In general, you shouldn't put money in the stock market if you're likely to want to access it in less than five years. If you're a 20-year-old student, it seems likely that you're in that situation, so you might consider leaving it in the ISA, or in some other investment with lower volatility than the stock market. – Mike Scott Dec 11 '14 at 16:02
  • @MikeScott Ah, nutmeg was saying 3 years minimum, which is around the point where I'd want to take it out. – Yann Dec 11 '14 at 16:05
  • While this is an old question; although it says 3 years minimum you ideally want to set the funds aside for 5 years or greater (think: decades) to smooth out any drops in the investment with the increased returns. That way, say your ROI was 1, 3, -1, 5, 4% per year, you would have 12% in 5 years instead of 3% in 3 years (so averages of 2.4% per year compared to 1% per year). – Talisman Jan 23 '18 at 17:30

Only 20, and going through university

This is an important question to ask yourself. Your earnings are 0 and will remain so, unless you start working. Are you willing to halve your money, if the markets tank after you put in your money ? Mostly good investors will buy some more, if they know the stocks they have picked are good. Considering that you have no income you will loose out on it. If you are graduating soon, it might make sense to start investing but it should be reliant on the fact on how quickly you will land a job.

I would suggest stay put in the ISA for the time being. Check out if you might get a higher rate of interest if possible and transfer there. Check out Moneysupermarket . Don't blindly put money in a ISA, see if you are getting the best deal in the market. And one thing, interest on ISA is calculated daily.


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.