Stocks & shares ISAs overtake cash ISAs as cash inflows decline £20bn

Amount held in cash ISAs falls by £20bn

The total amount invested in stocks & shares ISAs has outstripped that of cash ISAs, as cash inflows declined by almost £20bn.

The total amount of money held in adult stocks and shares ISAs now stands at £315bn compared to £270bn in cash ISAs, according to the latest figures from the HMRC. This reflects the fact the stockmarket has produced better long-term returns than cash, and also that people investing in stocks and shares ISAs tend to hold them for longer. Some £22.3bn was subscribed to stocks and shares ISAs during the 2016/17 tax year, up from £21.1bn in 2015/16, and the number of subscribers also increased from 2.53 million to 2.58 million. 'Unwelcome surprise' as govt slashes tax-free dividend all...