Are ISAs really that good?

AviatorEGHH · 22 May 2018 at 7:15PM

Hi everyone,
At the moment I am fortunate enough to have some money saved and sitting in Cash ISAs.
I can't help but feel I am losing money...am I wrong???

Interest rates are bad as we know but more importantly, even if they improve, they will never be higher than the rate of inflation. Therefore, my saved money is losing value every year.

So, why is MSE so pro ISA???
Should I be looking at Stocks and Shares ISAs? Using my savings as a deposit on a buy-to-let property?
I have no debts or loans but I have a mortgage running at about 1.3% and always manage max overpayments to reduce the term.

Someone out there must have a good suggestion for me. I lost...HELP!

Thanks!!

savingwannabe · 22 May 2018 at 7:41PM

Hello Im not an expert, I agree to some extent because of inflation we are losing money but you wont pay tax on these savings in the long run. I am sticking all my money in current accounts at the moment as some of them pay well.

Owain_Moneysaver · 22 May 2018 at 10:02PM

In the long term all the growth in ISAs is tax free; that could be valuable in the future if you get to £1000+ savings income. However tax rules and rates may change.

Many ISAs do offer very poor rates but if you shop around and are willing to fix rates between 1 - 5 years you can get a not-too-disappointing rate.

Instant access 1.31% Paragon, 1 year fix 1.51% Bank of Cyprus, 5 years 2.3% Shawbrook Bank. Current rates on MSE Savings Guide

pogofish · 23 May 2018 at 12:21AM

Do you actually bank with MSE...?

That may be the cause of your confusion.

Maybe the Banking or Savings and Investments Forums would prove more helpful.

AviatorEGHH · 23 May 2018 at 9:09AM

Yeah, I ended up here by mistake really

I think I'll rethread over there!

Are ISAs really that good?

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