The HMRC has reported that £270bn is currently invested in cash ISAs. The Cash option has become rather unattractive in recent years, with rising inflation rates and average cash return lows of 0.46% per year (Bank of England, December 2016), it’s likely that you are looking for an alternative.
Although you know that a Stocks and Shares ISA can offer better growth opportunities you may be worried about investing into a potentially volatile market.
What if you could invest into an ISA that offered a guarantee? A guarantee of better potential growth than cash while providing certainty for your capital or future income.
Well now you can. The new guarantee ISA offers two options:
- Guaranteed Income
- Guaranteed Lump Sum
Guaranteed Income means you can use your ISA for a guaranteed income in retirement. You have the ability to start, stop and restart taking your income whenever you like. Alternatively, if you defer taking your income it will benefit from a compound percentage increase annually.
Guaranteed Lump Sum means you can choose a secure capital option that offers a guaranteed amount at the end of your chosen term.
Both have the potential to lock in growth and increase your guaranteed benefits.
This Guaranteed ISA is suitable for transfers from Cash ISAs or other Stocks and Shares ISAs as well as for new money. With the annual ISA allowance having risen this tax year (2017/18) to £20,000 this offers a great opportunity to save for the future without the usual risks.
So if you are unhappy with your cash ISAs underperformance and want to try something new or you are looking to protect your past investment gains, this could be it.