Why Invest in a Stocks & Shares ISA?
Out of the two ISA options, Cash ISAs and Stocks & Shares ISAs, Britons tend to choose cash. Over the short-term, this can be a sensible choice, but it’s important to understand the interest rates and typical performance of different types of ISA before making a commitment. In August 2016 the average interest on a Cash ISA was just 0.95%* and, while inflation has been lower recently, the historic average of inflation is much closer to 5%*. In addition, many banks offer short-term introductory rates that plummet after 12 months. Some providers also charge you to access your money within a certain period.
If you’re investing for a long-term goal, one that’s five or more years away, investing in a Stocks & Shares ISA has the potential for much greater returns than a Cash ISA. In 2014/15, the average return on a Stocks & Shares ISA was 7.4%*. That means you may reach your goal quicker than you think – far better to get there early than not at all.
With True Potential Investor you can withdraw cash from your Stocks & Shares ISA at any time, without losing the tax breaks, and reinvest back into the ISA within the same tax year, without it counting towards your annual allowance. This is possible through our award-winning impulseSave® technology that allows you to top up your investment anywhere from £1 to £99,999. You can also add the remaining funds to your ISA to fill your allowance for the tax year by opting for our Max Allowance feature within impulseSave®.