Savers are turning their attention away from cash ISAs to their stocks and shares counterparts, it has been claimed.
With base rate having been on hold at the record low of 0.5% for the last year and a half, and savings rates suffering as a result, NFU Mutual said that savers were giving alternatives to cash ISAs some serious consideration.
More than 17 million Brits currently hold a cash ISA, but many are thought to be re-evaluating their options.
"Since 1999, ISA accounts have been a popular choice for hard-working savers," said Chris Linpow, investment specialist at NFU Mutual.
"However, the tax-free benefits of cash ISAs are cold comfort for savers, with the latest Consumer Prices Index inflation figure at 3.2%."
Although stocks and shares ISAs offer the potential for significant returns over the longer term, they will not be suitable for everyone.
The value of investments can fall just as easily as it can rise, with there being no guarantee that the original investment will be returned, unlike with a cash ISA.
There are also still some excellent cash ISA rates around, particularly if you're willing and able to leave your money invested for any length of time.
Household names such as Santander, Northern Rock and Bank of Scotland all currently offer some of the best cash ISA rates.
Why not check out our cash ISA best buy chart to make sure you're not being short changed by your cash ISA?
Or if you're one of those savers who have set their sights on a stocks and shares ISA, you can see some of the best ISA funds by clicking here.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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