Under the new rules investors will now be able to switch back and forth between cash and stocks & shares, rather than having to disinvest from a stocks & shares ISA if they want to transfer to cash.
Mike Barrett, platform manager at Skandia comments:
“Those choosing to divide their annual ISA contribution by 12 and invest monthly can start to take advantage of the new rate from next week, increasing their monthly contributions to £1,250 from Monday 7th April.
“The changing structure is not only great for seasoned ISA investors, but also for those who may have previously been hesitant to invest in the stock market as it allows them ‘dip their toe in the water’ within a single product.
“As well as offering a wide range of funds, we will be looking to enhance our cash option by 1st July to offer the most competitive interest rate we can secure.”