It’s over twenty years since ISAs were launched and they remain one of the most popular ways to save and invest. Your annual ISA allowance is a valuable opportunity to help grow your money and shelter it from any further liability to Income Tax and Capital Gains Tax. However, to counter the threat of inflation, you need to invest it wisely and make an informed decision about exactly which kind of ISA you invest in.
Cash ISAs or Stock & Shares ISAs?
Since 1999, four out of five ISA subscriptions have been deposited into Cash ISAs. Those savers risk failing to make the most of this long-term, tax-saving opportunity. Why? Because returns for this particular kind of ISA remain at a near-record low. In fact, for most of the last decade, the average Cash ISA account has lost money in real terms.
By contrast, Stocks & Shares ISAs represent over half the total value held in ISAs – despite accounting for just one in five subscriptions. This shows the importance of being mindful about exactly how you invest your ISA allowance… ensuring they have the potential to create long-term capital growth and income.
NB: The maximum you can save into an ISA in this tax year is £20,000, but any unused allowance is lost after 5 April.
A Off-Piste Wealth, we can show you exactly how to make the most of a Stocks & Shares ISA – which we still see as a long-term, wealth-building opportunity.
If you’d like to make sure you make the most of your ISA allowance before the end of the tax year, get in touch today.