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Stocks and shares ISAs beat cash ISAs - is it time to start investing?


//stocks-investing.news-articles.net/content/202 .. eat-cash-isas-is-it-time-to-start-investing.html
Published in Stocks and Investing on Thursday, February 20th 2025 at 11:41 GMT by MoneyWeek   Print publication without navigation

  • The average stocks and shares ISA returned almost 12% over the past 12 months, versus 3.8% for the average cash ISA. As Rachel Reeves considers cutting the cash ISA limit, is it time you started investing?

The article from MoneyWeek discusses the advantages of investing in Stocks and Shares ISAs over keeping money in cash, especially in light of the current economic environment. It highlights that with inflation rates soaring, the real value of cash savings is diminishing as the interest rates offered by banks are significantly lower than inflation. Stocks and Shares ISAs, on the other hand, offer the potential for higher returns through capital growth and dividends, which could outpace inflation. The piece explains that despite the risks associated with stock market investments, such as market volatility, the long-term benefits include tax-free growth within an ISA, diversification opportunities, and the potential to beat inflation. It also notes that with interest rates at historic lows, the opportunity cost of not investing in equities is high, urging readers to consider shifting some of their savings into stocks to preserve and grow their wealth over time.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/personal-finance/stocks-and-shares-isas-beat-cash ]

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