Are you happy with the rate of interest on your Cash ISA?

It is important to review your investments on a regular basis to ensure they are continuing to meet your expectations. And, with many people expecting the current low rates of interest to continue, your cash ISA may not provide the returns you would like. So, perhaps you have already tried shopping around for a better interest rate, without success and would be interested in solutions that may potentially provide you with a better home for your investments, while still benefiting from the tax advantages of an ISA?
If so, then a Stocks and Shares ISA could be the way forward.
A Stocks and Shares ISA and a Cash ISA both offer tax advantages, but a Stocks and Shares ISA also offers you a choice of funds to invest in. If you want to invest over the medium to long-term (at least 5 years) and would like the flexibility to select funds that match your risk appetite then this could be for you.
So why invest in a Stocks and Shares ISA?
It’s true that putting money in shares and other types of investments is more risky than investing in cash and events since 2008 have gone a long way to showing this. Historically, over the medium to long-term, the returns from shares have however been better than cash.
Therefore, you could try to lessen the increased risk of investing in a Stocks and Shares ISA as opposed to a Cash ISA by spreading your money across a range of assets, combining different types of investments such as:
Fixed Interest
Corporate and Government bonds
Investment Bonds
Remember, simply investing in cash also has risks, for instance inflation may erode the generally lower returns you would tend to get from a savings account.
Tansferring an ISA is easy. You could transfer any accumulated Cash ISA money to a stocks & shares ISA without affecting the current year’s subscription limit (£15,240 for tax year 2016/2017).

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Please note when reading any information on this website: past performance is no guide to future performance. The value of an investment may go down as well as up and an investor may not get back the full amount invested. Before investing, please ensure that you have read the information set out in the simplified prospectus, which includes full details of the charges. Any material available is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. Opinions expressed on this website represent the views of Stephen Baker Financial Consultants Ltd at the time of publication, are subject to change, and should not be interpreted as investment advice.

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