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Cash ISAs are not what they once were

HM REVENUE & Customs have confirmed that Britain has fallen out of love with the cash ISA after pathetic 0.93 percent returns on Cash ISAs across 2017 marked the worst level of return ever recorded.

Moneyfacts has revealed that in the last tax year, 2016/17, there was a steep fall in the popularity of Cash Individual Savings Accounts (ISAs) with the number of Cash ISA accounts subscribed to down 1.64 million from the prior year – a drop of around 16 percent – and the lowest level in 15 years. 

The paltry 0.93 percent return on savings is derisory in its own right, but considering the current 3.1 (now 3.0) percent rise in inflation over the corresponding period means that British cash savers lost value while their cash sat in the ISA.

But what can be done to help the UK saver from losing money while Bank of England interest rates remain low and inflation remains at around 3 percent?
Angus Dent, Chief Executive Officer peer-to-peer lender ArchOver told Express.co.uk:
“Those with cash languishing in poor-performing ISAs should have the confidence to embrace other forms of investment and make their money work harder.” 

Jason Hollands Managing Director, at Tilney Investment Management Services agreed and said British savers have a habit of leaving money in poor performing accounts for long periods of time.
To change this, he said: “Firstly, consider paying off any expensive borrowings, such as credit card bills, and if you have cash you can afford to tie up for the longer-term – by which I mean five years or more – forget cash ISAs and put your money in an investment ISA instead.

“Yes, funds investing in stocks and shares can move down as well as up over short periods of time, but over the long-term they have consistently beaten cash returns by a landslide.”
If inflation-beating returns are the name of the game, Anthony Morrow, CEO and co-founder of evestor.co.uk, said: “Consider a stocks and shares ISA instead of a cash ISA. They can offer significantly higher returns on the same £20,000 allowance.

“Consumers may sometimes avoid this option thinking they need to be stock market whizzes to have a stocks and shares ISA. This isn’t the case as the ISA is tracking the market for you, meaning you’re not constantly buying and selling shares.”

Investment Owl have a range of investment ISA’s offering great returns and superb strategic security.

Heres a snap shot of three:

Managed ISA
Managed by an A-rated investment team, fully regulated, strong track-record
Term: 24 months
Minimum Investment: £1000
Return: 3.5% per annum

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Managed ISA
This managed ISA has been selected as the ‘Best Managed Stocks & Shares ISA’ for this year. It’s fully regulated, property backed, with an excellent track record and returns can be paid every 6 months.

Term: 60 months
Minimum Investment: £1000
Return:7% per annum

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Innovative Finance ISA
This Innovative Finance ISA is managed on a platform that spreads risk across a number of businesses with the platform offering compensation under the FSCS. Strong underlying assets.

Term: 60 months
Minimum Investment: £5000
Return: 7% per annum

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