Cash Isas perform better than equity-based plans

With the new year coming it is important to invest in your ISA as soon as possible to maximise the tax benefit.

Cash individual savings accounts (Isas) have generally produced higher returns than their share-based equivalents over the past decade – even after this year’s strong stockmarket recovery, according to an analysis for the FT.
Savers who have used their cash Isa allowances every year since 1999 – when the tax-favoured investment scheme started – could have accumulated about £44,000, thousands of pounds more than from investing the same amounts in index-tracking stock market Isas, though less than from a typical bond fund Isa.

 Source Ft.com
Posted by L Kempes