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  • Writer's pictureDavid Yeardley



We know the tax benefits of an ISA. But what if you hold cash in it? Holding your ISAs in cash rather than stocks and shares has a significant cost.


·        A typical couple holding, £20,000 each in cash ISAs may be missing out on over £15,000 of real return over 10 years*.

·        Inflation and opportunity cost are factors that impact real returns.

·        When inflation is higher, the erosion of value is increased.


It’s important to have cash for managing unexpected events, as well as general living expenses. However, keeping all your savings in cash will result in losing money in real terms.


Your next steps

To help make a start with managing your cash flow, it’s important to figure out the following:


-        How much cash have I got

-        How much do I need

-        When do I need it


We’re here to help

We can help by considering how we can use your existing provisions to help you achieve your financial goals. We do this before we look to see how we can build upon the progress you have already made. Please feel free to get in contact.



Tax treatment varies according to individual circumstances and is subject to change.


Stocks and Shares ISAs invest in Corporate bonds; stocks and shares and other assets that fluctuate in value.


The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.


For ISAs Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.




Approver Quilter Wealth Limited, Quilter Financial Limited, Quilter Financial Services Limited & Quilter Mortgage Planning Limited. April 2024.


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