Question about Cash ISAs

five_o

I noticed a lot of questions on here about ISAs and there's a lot of advice about maxing out Cash ISAs. I'm a bit confused about this. With the highest Cash ISA available offering around 3% and with inflation at roughly the same amount, surely a person who wants to see long-term real growth would invest all their allowance into an S&S ISA which has more chance of keeping ahead of inflation (albeit at a higher risk)

Can anyone explain if I'm right or wrong about this?

bryanb

You are right, but you can also lose with S&S, depends on your attitude to risk.

mgdavid

also you might be in a position where you may need the cash at a random time so cannot afford to risk having to sell S&S ISA when the market is low. I.E. using ISA for mid-term savings

jimjames

five_o wrote: »

Can anyone explain if I'm right or wrong about this?

You are right if you are prepared to take the risk. I've not done a cash ISA for 12 years and aim to max out the S&S ISA instead.