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Monday, 13 November 2017 13:45

ISAs are not the best option for everyone

We’re always getting asked what the best method is when it comes to putting money away and, in turn, making more money.

The truth of the matter is that there are a number of different ways where money can be saved. This can either be with savings accounts, ISAs and pensions – all of which have been available for years. It all depends on what a person’s circumstances are.

With the previous thought in mind, it came to our attention this week that many people, especially those on the lower end of the pay scale, may have been missing out by making the wrong financial investment choice.

According to experts in the field, people who earn less than £30,000 per annum are making a big mistake if they invest their cash in an ISA, as they have already lost out on a combined value of £100billion by simply mis-investing and choosing the wrong option.

It is advised that people who earn less than £30,000 should invest in other methods other than cash ISAs as they will not get the returns needed and will, in actual fact, be losing money in the long term.

It is also advised that people who fall into this earning bracket should invest in stocks and shares as there will more than likely be more rewards to be had – homework will be required into this market however, as it can be somewhat of a minefield.

The dropping of interest rates has also meant that cash savers have really been punished and no real return has been made at all. In the summer of last year, rates dropped to 0.25 per cent meaning cash savings were virtually worthless.

People looking into stocks and shares as a way of investing has actually decreased massively over the years and this is partly to do with the rise of things like ISAs, but recent figures have shown that ISAs are doing nothing to help the average joe earning a modest salary in this country – people need to be more educated about the best saving options for their circumstances.

Analysts say that stocks and shares investment options have far outdone cash alternatives over the last couple of years in terms of rewards but people are reluctant to change their methods.

Research and information is needed to get people engaged into what their best options are. A lot of the time people just follow the crowd and put their savings money where they think everyone else has theirs. This isn’t the way forward. Everyone’s circumstances are different and circumstances should dictate what happens to your money.

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