Recent research indicates over £270bn is currently languishing in cash ISAs. Rising inflation rates and record low interest rates are forcing savers to look into alternatives to this now underperforming investment option.
Stocks and Shares ISAs do offer better growth potential, however with this comes a higher level of risk. With little to suggest any change in market volatility, and with the political uncertainty surrounding the forthcoming snap election, this route is not so appealing to cautious investors.
With the ISA allowances increasing for £20,000 for this tax year, research has highlighted that consumers are now looking to alternative ways to invest their savings to get a better return.
Simon Turner, Chartered Financial Planner at Sutton McGrath Hartley Financial Services provides further insight: “Regardless of what you invest in, the ‘tax wrapper’ is possibly the most important component within any investment strategy, as the tax you pay will ultimately affect the return you receive.
“ISAs are an excellent way of protecting your investment returns from tax and wherever possible should be maximised. However there are many investment strategies that can be adopted regardless of your attitude towards risk which can help to improve your potential investment returns.
“Having already taken steps to protect your savings from tax within an ISA it is important to ensure that you are also receiving a healthy rate of return on these savings.”
At Sutton McGrath Hartley Financial Services, we are on hand to offer strategic advice when it comes to making your savings and investments work harder for you.
As Independent Financial Advisers, we are able to offer whole of market solutions, which means we are not restricted to any one specific product.
If you would like to speak to us about how we can help make your savings deliver better results for you, please contact Simon on 0114 266 4432 or email: firstname.lastname@example.org to arrange a free initial consultation.