Stocks and Shares ISAs vs Cash ISAs: Do you know the difference?
Martin Jeffers Wealth Management
Stocks and shares or cash are the main options for your ISA allowance. Four out of five ISA subscriptions since 1999 have been in Cash ISAs.
Unfortunately, this may be something of a missed opportunity. While cash is essential for day-to-day expenses and emergencies, in the prevailing climate of low interest rates and persistent inflation, returns are likely to be at best marginal, and at worst negative.
Stocks and Shares ISAs carry higher risk but the potential for better returns and the risk can be reduced by investing in a portfolio of investment funds as opposed to investing in individual shares.
The annual ISA allowance is £20,000 per year per adult and when you decide to take money from your pension there will be no tax to pay making ISA investments very tax efficient.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.
An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA. The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.
Check out my video, to find out more.
For a no obligation chat about your ISA options, just ask.