Does a cash ISA still make sense?
The most recent ISA statistics from HMRC show that in April 2018 over £270m was invested in cash ISAs, which represents around 44% of the total adult ISA funds.
Whether that is a sensible use of the tax advantages offered by ISAs is a moot point. The introduction of the personal savings allowance in 2016/17 means that most savings interest no longer attracts tax. Add to that the lowly cash ISA interest rates – NS&I pays only 0.9% – and if you still have a cash ISA, you may want to consider transferring it to the stocks and shares version.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
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