Brexit-proof your savings with a stocks and shares ISA

Whether you are for or against it, Brexit poses uncertainty regarding what the effects will be on the UK economy and the wealth of the individual.

Will Theresa May continue with her hard Brexit approach if the conservatives win the general election, or will a surprise result mean we go for a softer approach, or even a second referendum?

The uncertain future of savings’ interest pre-Brexit

Whatever the result, speculation is only going to increase over the next 2-years. A good example of this is the debate over London remaining the financial capital of Europe, post-Brexit, as discussed in a recent article in the Investment Observer. According to this, French President Elect, Emmanuel Macron, has set his sights on making the UK feel their loss once we are out of the EU. He is determined to make Paris the new European banking centre. These sorts of ongoing debates are not good for the bank rate, or therefore for the interest rate on savings.

Many people now choosing stocks and shares ISAs as their preferred savings vehicle

With the future of interest rates on savings being as bleak as they are at present and in the short-to-medium-term future, many people are now turning to ISAs as being their most preferred vehicle for their savings; stocks and shares ISAs in particular. So what are the benefits of choosing this form of investment?

ISA Brexit

The many benefits stocks and shares ISAs have to offer

People need to look for the best isa to suit their financial situation and therefore, the first thing most people are interested in, is what interest rate a stocks and shares ISA will provide, so let’s take a quick look at this, and the other benefits that a stocks and shares ISA can provide.

Excellent growth rate

The prices of stocks and share do of course fluctuate, and to get the best results from stocks and share ISAs you should be in them for the long term. Even so, a snapshot of average stocks and shares ISA performance at this point in time, shows an amazing growth rate of 15.8% so far this year, according to Moneyfacts.

Invest up 20,000 p.a. tax free

With the amount of money you can invest in a stocks and shares ISA recently having been increased by the government, you can now invest up to 20,000 per annum tax free.

Access your cash as when you need it

Many saving vehicles offer higher returns by locking your cash in for set periods of time. This is not so with a stocks and shares ISA. You can access your cash and as when you need it.

Easy to keep tabs on your savings

The other good feature about a stocks and share ISA is that it offer full transparency, so it is simple to keep tabs on how your savings are performing.

Stocks and shares ISAs – still the best investment after 20-years

With all of the uncertainty that Brexit (hard or soft) has brought to the money markets, the Financial Times maintains that after being in existence for approximately 20-years, ISAs are still the best investment for the discerning individual.

Choosing the right wealth management company is important. They will manage your stocks and shares ISA fund for you, tailoring its make-up to match your appetite for risk. You will pay a small management fee, but you can still expect high returns after fees are paid. Some wealth management advisors offer free management on the first 10,000 invested.

For added security, make sure that the wealth management company you decide to go with, is FCA (Financial Conduct Authority) approved.