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.
