6% first direct regular saver or s&s isa

A question about : 6% first direct regular saver or s&s isa

We are hopefully paying off our mortgage in the next month or so
We wanted to invest our monthly payments and we're wondering if paying into the first direct regular saver then at the end of the term transferring to a s&s isa would be a better investment than paying monthly to a s&s isa?

Any ideas?

Best answers:

• It depends on how the stockmarket performs. It could give rise to better or poorer returns. It also depends what 'better' means. On average, over the long term, money invested into equities has generated better returns than 6% (minus any tax you will pay). However, there is no doubt over what you will earn from the RS.
• Firstly, congratulation on the mortgage.
  With regards to the 6% account, I've had one for a number of years (it used to be 8%) and it works well for me. It doesn't earn a fortune (by my calculations after 20% tax it's around Ј85 a year on the maximum Ј300 per month) but it takes minutes to set up so I consider it free money. You have to decide whether you'd beat that on an s&s isa. The one thing on the FD account is that you have a guaranteed return.
  My situation is different to yours though as I have a fantastic offset mortage with First Direct. I could have paid it off years ago but it's set at 1% over base so I'm only paying 1.5% on anything that I borrow. My interest cost on doing this are Ј26 a year so that's around Ј60 profit a year for 5 minutes work.