Stocks & Shares ISA – top five questions to consider

Stocks & Shares ISA – top five questions to consider

How do you choose between a Cash ISA and a Stocks and Shares ISA?

An Individual Savings Account or ISA is a like a wrapper that protects your money from tax. This year the government is offering everyone over the age of 18 a tax free ISA allowance of £20,000.

You can choose to put your allowance into either a cash ISA or a stocks and shares ISA… but if you don’t use it before the 5^th April, you lose it.

So how do you decide where to put your money? We’ve highlighted the key questions you should ask yourself:

1. Are cash ISAs still a good way to grow your money?

Cash ISA Interest

Inflation

The best rate for an Easy Access Cash ISA is currently around 1.1%¹ but the current rate of inflation is 3.1%².

If the cash you hold in savings doesn’t grow at a rate at least equal to inflation then the real value of those savings is eroded as the cost of living increases.

2. Can investing beat inflation?

• Market fluctuations – The value of your investment can go down as well as up
• 3 years or more – Investing is only suitable for the long-term
• The fees – There are costs associated with investing

4. What are the benefits of a Stocks and Shares ISA?

 

14.5%

Returns offered by Click & Invest Measured Investment Strategy between Jan and Dec 2016^*

 

Tax-free

We have over 180 years’ experience of managing investments

 

Flexibility

We aim to beat the market, not just track it

Small fee

We only charge a fee of 0.65% (plus underlying charges that average 0.60%)

Transfer

We accept transfers of Cash ISAs or Stocks & Shares ISAs at any time of the year