With cash ISA interest rates remaining low, Moneyfacts research reveals a light at the end of the tunnel for savers who sport an appetite for risk.
New research by Investment Life and Pensions Moneyfacts has revealed the extent to which stocks and shares ISA investors were rewarded for their investment choice during the 2013/14 tax year.
The survey revealed that the average stocks and shares ISA fund posted growth of 9.42% during the last tax year. This follows on from double-digit growth (13.7%) during the previous 2012/13 tax year.
By contrast, the average interest rate on cash ISAs (both fixed and variable rate ISAs) during the course of the 2013/14 tax year was just 1.69% - a fairly disappointing return on your hard-earned cash.
The latest solid performance of stocks and shares ISAs means that they have posted positive growth in nine of the fifteen tax years since the introduction of ISAs back in 1999. Overall, the average stocks and shares ISA has delivered growth of 144% since the start of the ISA regime.
Richard Eagling , Head of Pensions and Investments at Moneyfacts, said:
"The performance of stocks and shares ISAs during the 2013/14 tax year has been pleasing. The vast majority of investors who opted for a stocks and shares ISA rather than a cash ISA will have been rewarded for their decision.
"With signs of economic recovery and no significant improvement in cash ISA rates, we would expect to see the popularity of stocks and shares ISAs increase further this tax year."
With the Budget 2014 announcements on NISAs due to come into play on 1 July, allowing investors to move money freely between cash and stocks and shares ISAs, many more people may be encouraged to consider looking at stock and shares versions for a measurable return. However, they should remember that stocks and shares ISAs are a form of investment and their money can go down as well as up.
As cash ISA rates have been cut again, just three weeks into the new tax year, perhaps it's time to look elsewhere to make your money work harder for you and you could soon be enjoying the rewards that a stocks and shares ISA can offer.
Find a home for your 2014-15 cash ISA allowance
If you've got the appetite for risk why not compare stocks and shares ISA Funds or open up a self -select ISA
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