Stocks and shares ISA
A stocks and shares ISA could be for you if:
- You would like tax-free savings, including not paying tax on any capital gains and income (tax from dividend income is deducted at source and cannot be reclaimed)
- You are looking to invest for at least five years
- You haven’t used up your full ISA allowance for the current tax year
It is worth noting that the long-term annualised real return (i.e. the return after inflation) from investing in a mix of bonds, equities, and cash has shown that historically this mix has produced higher returns than cash savings accounts or Cash ISAs.
NOTE: higher returns tends to be accompanied by higher risk.