Bank of England base rate at 0.1% since start of pandemic in March 2020
What has happened to cash ISA’s?
The return on investment from some major providers is low. If you have a cash ISA with the Halifax, for example, the return is just above base rate at 0.2%.
So a fund of £20,000, invested into a Halifax ISA since the start of the pandemic would have grown to £20,040, whereas a typical stocks and shares ISA, invested during the same period, would have returned £23,658. There is no penalty for accessing Stocks and Shares ISAs ,although, like most investments, they are best left for the medium to long term.
Consider transferring any low return rate ISA to a low- risk stocks and shares investment fund, invest in a Stocks and Shares ISA for this year, or hold off investing in an ISA until you are sure about the possible returns you may make.