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Cash ISA or Stocks and Shares ISA

  • Cash ISA or Stocks and Shares ISA?

    Which one works best for you and your money

  • You wouldn't stuff cash under your mattress... so why leave your money in cash?

    Investing is 90% more likely to outperform cash over 10 years.*

    So your money can go further.

    *Barclays Equity Gilt Study 2016

    Open an ISA today

What’s your time frame?

As investing should only be considered for the long-term, your time frame for saving will have a big influence over what type of ISA you choose. Five years or more, but ideally ten years, is considered best practice. So, if you think you’ll need your money within the next five years then a Stocks and Shares ISA probably isn’t right for you.

However, the real difference between these two ISAs is significant when you compare the performance of cash against investing over the long-term.

Is cash actually risk free?

If you look back to when the stock market began, over any 10 year period, you were 90% more likely to do better in shares than in cash.(Barclays Equities Gilt Study 2016)

Whilst there are no guarantees and you may get back less than you invested, your money would have worked harder for you if it was invested in a Stock and Shares ISA compared to a Cash ISA. Interest rates have been at historic lows since the financial crash in 2008 and along with inflation, Cash ISAs have struggled to help your money grow. So keeping money in cash carries its own set of risks, too. 

The share data is based on the total returns from the FTSE 100 and the cash return is based on the average UK base rate from the Bank of England Data runs from 31 Dec 2007 to 31 Dec 2017.

 

 

 

What are the differences?

There are some basic fundamentals that are the same for both Cash and Stocks and Shares ISA. With both you can:

• Hold up to £20,000 per tax year
• Access your money at any time
• Enjoy tax-efficient benefits

However, there are some key differences that could help you choose which is best for you and your money.

Cash ISA

  • Cash will never outperform inflation
  • Receive interest only at a fixed or variable rate 
  • Good for savings plans less than five years
  • Fixed term cash ISAs could lose you money if you withdraw your cash early
  • Ideal if you don't want any investment risk

Stocks and Shares ISA

  • Choose from a wide range of investment types to minimise the risk
  • Benefit from the potential growth of the stock market
  • Good for savings and investment plans of five years or more
  • You can access and withdraw your money at any time
  • No guarantees as investments can go down as well as up and you may get back less than you invested

What else can I do to reduce the risk?

Cash is considered as an asset type. If you keep all of your money in cash, you have invested in one asset type and are 100% open to the risks it may bring, such as low-interest rates and inflation.  

By investing your money within a Stock and Shares ISA, you are able to invest in a wide range of assets, sectors and regions to help minimise any potential risks. With the added benefit of potentially outperforming cash based savings. 

Invest in a Selftrade Stocks and Shares ISA and get your money working harder for you

By investing your cash savings into a tax efficient Stocks and Shares ISA you’ll make sure you don’t pay any more tax than you need to and take advantage of the following benefits:

  • £20,000 annual ISA allowance limit
  • Don’t pay any Capital Gains Tax or additional income tax on any gains made
  • No need to declare on your tax return
  • Your money can be accessed any time
  • Potential to outperform your cash savings over the long-term

Why choose a Selftrade Stocks and Shares ISA?

Simple and Hassle Free

Transferring from a Cash or a Stocks and Shares ISA

Transferring money and/or investments from another ISA provider into your Selftrade Stocks and Shares ISA is simple and hassle free and it takes less than 10 minutes to arrange. 

1. Download and complete the relevant form.
2. Return the completed form to us 
3. We’ll take care of the transfer from your old provider to your new Selftrade Stocks and Share ISA

If you haven't got an ISA with us, you'll need to log in to your account and open one first before you can transfer in.

Log in here

ISA Transfer in form

As easy as One, Two, Three

Depositing money from savings/current account

Top up your account in minutes using your debit card to deposit your money into your ISA. 

1. Log in to your Selftrade account
2. From your dashboard, select 'View' your ISA, 'Manage A/C' then 'Top-up'
3. Use your debit card to top up instantly or easily set up a bank transfer from your nominated bank account

Great Value

We understand that you only want to pay for what you use, and not for items you don’t

  • We are completely impartial and are not incentivised to sell any investment type to you
  • We do not provide advice so we don't charge you for it
  • Fee discounts for frequent traders

We also offer a range of free tools to help you compare and decide what to invest in your ISA.

And this is all part of our service, as standard, at no extra cost.

Making a Selftrade Stocks and Shares ISA great value.

Protecting your investments

We are part of Equiniti plc, a FTSE 250 company that is trusted by 60% of the top 100 UK companies for 25 million UK people. 

We hold your money and investments safely and separately from our own assets. Your cash and investments belong to you and not anyone else and are easily identifiable from our own assets and the investments of other customers. So you can be confident that your money is safe with us.

We are authorised and regulated by the Financial Conduct Authority.

Here's some articles you might find useful from our independent writers

  • How to use an ISA for income

    Rosie Murray-West explains how to invest for income and how your ISA can make that income tax efficient.

     

  • LISA Or Pension, Which is right for you?

    Rosie Murray West helps you decide what's right for you, a LISA or a Pension.

     

  • How to provide an early inheritance with an ISA

    Rebecca O'Connor explains how you can provide your family with an early inheritance.

     

  • How to balance risk and reward

    Tom Sieber provides you with an insight on how to balance risk and reward when investing.

     

  • How to turn wasted cash into returns

    Rebecca O'Connor explains how you can turn your wasted cash into returns. 

     

  • How to use an ISA for income

    Rosie Murray-West explains how to invest for income and how your ISA can make that income tax efficient.

     

    Find out more
  • LISA Or Pension, Which is right for you?

    Rosie Murray West helps you decide what's right for you, a LISA or a Pension.

     

    Find out more
  • How to provide an early inheritance with an ISA

    Rebecca O'Connor explains how you can provide your family with an early inheritance.

     

    Find out more
  • How to balance risk and reward

    Tom Sieber provides you with an insight on how to balance risk and reward when investing.

     

    Find out more
  • How to turn wasted cash into returns

    Rebecca O'Connor explains how you can turn your wasted cash into returns. 

     

    Find out more