Video: Could A Stocks & Shares ISA Be Right For You?
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
Cash ISAs could be losing you money due to low interest rates and rising inflation, have you thought about moving your savings to a Stocks & Shares ISA?
The big advantage of a Stocks & Shares ISA is that it has the potential to outperform inflation. Your return is based upon the performance of the fund you are invested in.
As inflation is currently at 3%, you need a return over this figure, or your money could be losing value.
Many Cash ISAs are currently losing value as interest rates are around 1%, when inflation is 3%. A Stocks & Shares ISA could be an alternative.
Whatever your investment goal, the likelihood is that it will take time to reach it. Typically, you’ll want to invest in a Stocks & Shares ISA for the long term, as this gives more opportunity to ride out fluctuations in the market.
If you are comfortable with accepting some risk, then a diversified Stocks & Shares ISA invested over the long term could be for you. You can put in up to £20,000 this tax year. This is a tax-efficient investment, and if you put in as much as possible each year, your returns could build into a sum that is necessary to achieve your savings goal.