Should I switch to stocks and shares ISA?
A reader from Richmond is unsure about whether he should move from a cash ISA to a stocks and shares ISA.
Andrew Norton, Halifax and Bank of Scotland investments expert, tackles the problem.
Sam from Richmond asks:
I want to use my yearly ISA allowance, but I can't find a cash ISA with a rate and terms I like.
Would a stocks and shares ISA be a good alternative?
Andrew replies:
A stocks and shares ISA could be an ideal alternative if you are willing to invest for the longer term (at least five years) and are prepared to accept some risk to your capital in exchange for potentially higher returns.
It's worth noting that what is acceptable to one person may not be to another and you should consider your attitude to risk when choosing an investment.
It's worthwhile seeking advice from a financial adviser if you're at all unsure.
The longer you leave your investment, the more likely you are to see a return, but the downside is that you may get back less than you invested.
Have a look at the Halifax attitude to risk tool.
If you have a question for Andrew, go to the myfinances.co.uk Ask the Investments Expert section
Or for more information on your investment options go to investments at Halifax.
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