Good evening
I'm sure graham has a thread on this somewhere but cannot find it.
My question is as above - what to do with cash in an ISA.
Due to the almost non existent interest paid by aj bell I wonder if there is a way of earning say 1.5% Apr in an investment (I'm thinking etf's etc) that would approximate (risk wise) as holding cash.
Obviously I realise that there is always going to be an increase in risk whatever you buy.
How do you guys deal with this.
Thanks in advance
Lordyjordy - it would have helped if you had said at the outset how long you were thinking of keeping your "cash" or do you just want to keep it until a good investment presents itself?
There are a few preference shares and similar with fairly short time horizons which can give much better returns than platforms will pay you but they only really work if you are happy to hold them until they mature. Otherwise you get killed by the spread.
One short term option you might want to look at is BBYB. It matures in July next year with an IRR of over 5% and YTM of just over 3% - both figures dependent on what your platform charges in the way of dealing costs.
Yes - there is some risk involved.
Disclosure: I hold BBYB and don't intend selling early but the above is definitely NOT advice or even a recommendation. Small changes in price make a big difference to the yield so be sure to do the calculations before pressing the BUY buttion.
