Stocks & Shares ISA or Cash ISA?

A Stocks & Shares ISA can provide higher returns than a Cash ISA over the long term. The chart below shows that over the last 50 years, stocks and shares have returned 5.4% per year, compared to cash at 1.9%. It is worth noting that the volatility on stocks and shares (and therefore risk of loss) is also higher.


Source: Barclays Equity Gilt study, 2016

Based on historical data, the longer your time horizon, the higher the chance that a Stocks and Shares ISA will beat a Cash ISA. Over the last 50 years, stocks and shares have beaten cash 75% of the time when held for five years, rising to 91% when held for 10 years and 99% when held for 18 years.

Please be aware that past performance is not a reliable indicator of future performance. We do not provide financial advice and can’t recommend what might be suitable for your personal circumstances. If you are unsure whether the products we offer meet your investment needs, you should consult a financial adviser.

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It's important you know

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest.

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