Stocks and shares ISAs overtake cash ISAs
Posted on September 1, 2017
The amount deposited into cash ISAs fell by £20 billion in the 2016/17 tax year as savers opted for stocks and shares ISAs.
Latest figures from HM Revenue & Customs (HMRC) revealed that the amount subscribed into cash ISAs fell by a third from £58.7bn in 2015/16 to £39.2bn in 2016/17. The amount of cash ISA accounts opened also fell from 10.1 million in 2015/16 to 8.5 million in 2016/17.
There is now around £315bn held in adult stocks and shares ISAs, compared to £270bn in cash ISAs, which could be due to the fact that stocks and shares ISAs have produced better returns over the medium to long term.
Sheffield Mutual’s Investment ISA is classed as a stocks and shares ISA, but only around a quarter of our with-profits fund is invested on the stock market – providing a low-medium risk investment but with greater potential returns than a cash ISA. With interest rates set to remain at an all-time low, people may be looking for alternative ways to invest their hard earned cash.
This blog provides generic information and opinions of the writer and should not be relied upon for making investment decisions. No advice has been provided by Sheffield Mutual. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouched for.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand. Any reference to taxation is based on the writer’s understanding of current tax legislation and practice, which could change in the future