Cash ISA worth it £20,000 limit?

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Hi all,

I had a question regarding Cash ISA's and the £20,000 a year limit. Are all Cash ISA's tax and dividend free?

I am in my late 20s and want to invest my money was thinking of doing it regularly long term for at least 20 years plus on 1 or 2 ETF, mutual funds etc..

Have you got a cash ISA how much have you seen it grow over the years if you invested in stock market, ETF, mutual fund etc...

And if you invest in non UK mutual funds, ETFs, stock market is the amount still dividend and tax free? If not how much do you have to pay yearly?

Thank you.

Yes they're tax free. But cash ISAs often don't have great interest rates. For long term investments you may want to consider more stocks and shares ISAs eg index trackers. If you've got money to save then definitely it's a good idea to do as much tax-efficiently as possible - pensions and isas.
(I'm not sure about ETFs - DH reads all the financial papers and won't touch them. )

I think you're getting cash ISA confused with stocks and shares ISA.

Both are tax free and you can contribute £20000 a year (at present), returns on a cash ISA will be peanuts compared to stocks and shares in the long run.

If it's a long term investment you're after I'd recommend a S and S ISA. personally I use vanguard, very low fees and a good range of funds. You can pick your own that way.

Any earnings and gains made in a S and S ISA are free of any tax including capital gains.

Personally I invest in a mixture of funds, but primarily S and P 500 and global all cap. My ISA has grown on average 10 percent a year, though the last 12-18 months have been turbulent, though this stagnation I expect will end soon and I can see some big gains to come.

irrespective of what funds you choose provided you buy them with the funds in your cash ISA they are tax free.

ISA is a wrapper. What is inside determines returns. Cash ISA just has cash in it, with a bank lending it out and giving an interest rate. Stocks & Shares ISA can have various things inside it, I use a global fund within mine to give me exposure to many thousands of companies stocks around the globe.

Invest for the long term.