"Slower inflation may encourage more interest rate cuts, which could push savings rates down, while the reduction in the Cash ISA allowance could make it more effective to stash your savings in a stocks and shares ISA for tax-free returns. Starting an investing account can be daunting. Cash savers only have to worry about the provider, deposit limits and the interest rates and terms on offer. But putting your money to work on the stock market can be more complicated."
"There are other factors to consider such as the investment platform you choose, the type of tax wrapper and the asset you invest in - such as funds or stocks - as well as your own risk attitude. Investing does tend to beat leaving money in cash over the long-term though, so it is worth getting started in the stock market once you've built an initial savings safety net."
Slower inflation could lead to interest rate cuts that lower savings rates, and a reduced Cash ISA allowance increases the appeal of stocks and shares ISAs for tax-free returns. Opening an investing account requires choices beyond provider and deposit limits, including investment platform, tax wrapper, asset type (funds or stocks) and personal risk tolerance. Investing typically outperforms cash over the long term, but savers should first build an emergency cash safety net. Clarifying financial goals and time horizons helps determine appropriate risk levels. Longer time horizons can favor equities, while bonds suit shorter horizons or more cautious investors.
Read at www.independent.co.uk
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