020 7189 9999
Opening hours
Mon - Fri: 7.45am to 6pm (Thurs 8pm)
Sat: 9.30am - 1.30pm
Request a call back
  • Home
  • News
  • Why choose a stocks and shares ISA over a cash ISA

Why choose a stocks and shares ISA over a cash ISA

Why choose a stocks and shares ISA over a cash ISA

It’s difficult to stomach the notion that money saved into a cash ISA could actually be worth less in the future than it is now. However, with the base rate stuck at an all-time low of 0.5%, it’s a struggle to find a cash ISA today that comes close to matching the inflation rate, which is close to 3%.

This means that as time passes, your savings could actually be losing value.

Is it time to think about a stocks and shares ISA?

Although it is prudent to hold some savings in cash in case of an emergency, a stocks & shares ISA could be an alternative to sticking with cash if you want to make your money work harder. These ISAs hold your money in investments such as funds or individual shares and they offer tax advantages as cash ISAs do.

With a stocks and shares ISA:

  • You don’t pay tax on the profits from your investments
  • You have the potential to earn better returns than current cash rates
  • You’re protecting your money against the effects of inflation through an investment with potential for capital growth
  • You can choose from a range of investments helping you diversify your savings
  • You can save up to £11,520 tax free a year (£11,880 in the financial year 2014/15)

See the benefits for yourself

Try our Stocks and Shares ISA Calculator to estimate the potential Income Tax and Capital Gains Tax savings you can make by investing in an ISA:

The Investor’s Choice

Bestinvest was voted Self Select ISA Provider of the Year at the Investors Chronicle and FT Investment Awards 2013. If you choose a stocks and shares ISA from Bestinvest you will be able to:

  • Get online and start investing in a matter of minutes
  • Save up to 5.5% in initial charges – that’s equal to £633 on an £11,520 investment
  • Access our free research (from a team that gets out and interviews over 400 fund managers a year)
  • Benefit from our award-winning customer service: Investors Chronicle and FT readers also voted us Best Stockbroker for Customer Service in 2012

Choose from a wide range of investments

The Bestinvest ISA gives you a choice of more than 2,000 funds, offered by more than 85 investment providers including a wide range of:

  • Investment trusts;
  • Exchange-traded funds; and
  • Shares listed on the London Stock Exchange (all with a low share-dealing charge of £7.50 per trade and flat-rate custody fees)

Off the peg portfolios

If you don’t want to choose your own investments, our ready-made portfolios give a starter portfolio of funds that we rate highly. They’re a quick way to begin if you don’t want advice and you’re happy to buy online.

Not just for grown ups

Children can also benefit from tax free investing, with an allowance of £3,720. To find out more about the Bestinvest Junior ISA and other investment strategies for children, download our Guide to Investing for Children.

Get your savings on track today

Make your money work harder. Call us on 020 7189 2400 today to find out more about investing in a stocks and shares ISA

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

Version: RC1026.42402