03.11.2022

Why sticking with a Stocks and Shares ISA despite rising interest rates is better for you

Why sticking with a Stocks and Shares ISA despite…

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The Bank of England has hiked the bank rate eight times in a row since December, and it now stands at 2.25%. That is the highest level since November 2008. We are due for another announcement today

Why invest in a Stocks and Shares ISA and not Cash ISA

  • We are a long way from cash being king again. Inflation is currently a staggering 9.9%, and no savings account pays anywhere near that. Which means the value of money held in cash is still shrinking fast in real terms.
  • You can make your money work much harder by investing in a portfolio of diversified funds through a Stocks and Shares ISA. This will give you a much better chance of protecting the purchasing power of savings.

Cash is a short-term king

  • The other attraction of investing in shares is that you could enjoy some share price growth when the stock market rises, which is not guaranteed  
  • Yet one should never judge returns from a Stocks and Shares ISA over a short period. Investing for the long-term, and over such a lengthy period, most portfolio of shares should compound and grow at a much faster rate than cash.
  • Naturally, there will be ups and downs along the way. Cash can work for short-term savings, but for my long-term retirement funds, investing regular into a Stocks and Shares ISA could be the answer.
  • cash is king
  • stock market
  • Invesment Planning
  • Stocks and shares ISA

I am an Independent Financial and Mortgage Adviser and have worked in Financial Services for over 12 years. During my career I gained experience in assisting both individual and corporate clients.…

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