Everyone in the UK over 18 has a £20,000 Individual Savings Account (ISA) allowance. You can choose to use all of this for a stocks & shares ISA, or divide it between a cash ISA and a stocks & shares ISA. You can also choose to put the full amount into a cash ISA. However, cash ISAs have often made news headlines through the miserly returns on offer. The Financial Conduct Authority (FCA) highlighted the worst offenders in a series of ‘sunlight data’ reports.
According to the FCA’s latest and final ‘sunlight data’ report published in October 2016, the lowest-paying culprits on open cash ISAs were TSB (0.5%), Danske Bank (0.1%) and Santander (0.1%). Hardly surprising that millions of people fail to use their annual ISA allowance.
Having reckoned with the miserly returns available on cash ISAs, you could be forgiven for expecting returns on stock and shares ISAs to be substantially better. However, more than 15 years after ISAs were introduced, the cumulative sums invested in stocks and shares products are still only roughly equivalent to those in cash! (Source: Financial Times)
Since July 2015, Avantis Wealth has offered a select portfolio of corporate bonds in response to our clients’ need for higher income from savings held within their ISA accounts. Currently we offer F.R.E.S.H. ISA investment opportunities with attractive rates of up to 10% p.a.