5 reasons for investing in a stocks and shares ISA

If you’re ready to try long-term investing, this is the place to start.

14:27 16 May 2013

If you are looking to invest money and skip potential growth issues linked to traditional savings accounts, your best answer may be to look into a Stocks and Shares ISA.

 

Not only does this allow for the potential of much greater return, but you have more say in how your funds are managed. This may be a particular interest to the growing number of people who are trying to invest more ethically and who want to support businesses that they admire.

 

What are the benefits of investing money in a Stocks and Shares ISA?

 

• Better interest rate—since your investment uses the trends in the stock market, as long as you take a long-term stance with your investment you’ll usually earn a much higher rate of return.

 

• Speedy growth—many times due to the trends of the stock market your initial investment grows much more quickly, especially if you reinvest dividends back into your Stocks and Shares ISA.

 

• Combined annual cap—one of the benefits is having a high annual cap to allow you to invest a decent amount, and even better if you have a spouse/partner you’ll be able to double that cap.

 

• Tax-free growth—one of the best parts of earning interest on your investments is that the amount you earn from your Stocks and Shares ISA is free of taxes.

 

• Control—if you want to know the companies you are investing in, and want to have a say in which companies you’ll be supporting, a Stocks and Shares ISA is a great way to accomplish that.

 

With these benefits you can have a better grasp on your finances and on the types of companies your money is supporting. You also have the choice to let someone else manage your funds if you don’t feel confident making those types of decisions, so either way, a Stocks and Shares ISA can accommodate your preferences.