Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

Stocks & Shares versus Cash ISAs

After a relatively calm 2017, stock markets have definitely been more volatile since the beginning of this year. However, with high inflation and low interest rates, we still think Stocks & Shares ISAs may offer good opportunities for investors who are able to tolerate the ups and downs.


Inflation is the rate at which prices for goods and services rise and, as a result, buying power falls. Right now cash ISA interest rates are below inflation, with Consumer Prices Index (CPI) inflation at 2.4%* and the highest yielding cash ISA paying just 1.69%**. This means that your cash savings are likely to be growing less quickly than prices are rising – so even if your savings account balance isn’t decreasing, you’re actually losing money in real terms.

Cash ISA interest rates are below inflation.

Risks and returns

If you are concerned about inflation and can tolerate a higher degree of investment risk, you could consider moving some of your cash savings into a Stocks & Shares ISA. Investments have the potential to give you higher returns than Cash ISAs, in excess of inflation. Of course, investing comes with risks. Stock markets can fall and you could end up with less money than you started with.

Investments have the potential to give you much higher returns in excess of inflation.
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Making it easy

If you’re thinking about investing, but don’t feel like you have the time, energy or knowledge to decide on the right investments, one of our Ready-made Portfolios could be the answer. Our team actively manages each of the portfolios, making all of the investment decisions so that you don’t have to!

Our portfolios are diversified across different asset classes, sectors and geographical areas, meaning your portfolio will be less likely to fall in value if one of these areas performs badly. As well as reducing risk, a diversified portfolio also gives you access to a wide range of investment opportunities across the globe.

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For more information on investing or using your ISA allowance please call us on 020 7189 9999 or email

*ONS for April 2018, as at 5 June 2018.

**According to Money Observer, June 2018