Why Should You Invest In A Stocks & Shares ISA?
If you are thinking about investing in a Stocks & Shares ISA, the first thing you should do is ask yourself what you want to achieve. By setting a goal, and determining how long it will take you to get there, you’ll have a better picture of what you need to do.
When looking at investments this way, you can compare products like Cash ISAs against Stocks & Shares ISAs.
One of the reasons Stocks & Shares ISAs make a lot of sense right now, is the current rate of inflation (2.6%) is nullifying the usefulness of Cash ISAs. The typical Cash ISA interest rate is below the current rate of inflation, meaning that your money could in fact be worth less if you leave it in a Cash ISA over a year.
For example, with £1,000 in a Cash ISA that grows at a rate of 1% each year, after 5 years you would have £1,051. However, if UK inflation was at 2%, your £1,051 would only have the same buying power as £950.
In contrast, a Stocks & Shares ISA has the potential to outperform inflation. Your returns in a Stocks & Shares ISA is linked to the performance of assets held within the fund you are invested in.
You can invest up to £20,000 in a Stocks & Shares ISA before April 6 2018, and can open an account from £50. It is a tax efficient savings scheme, and you can withdraw your cash at any time.
With our impulseSave® technology you can top up your investment anytime, anywhere. Learn more about our Stocks & Shares ISA here.
Your capital is at risk. Investments can fluctuate in value and you may not get back the amount you invest. Tax rules can change at any time.