cash isas

[pixiestix]

Sorry to ask what is probably a stupid question but is there any risk with ISA's? Can your money go down as well as up? I'm getting myself confused looking at different websites.

a cash ISA is a savings account like any other, so value doesn't go down and unless the banking guarantee fails your money is protected. Interest is paid tax free.

a stocks and shares ISA is the one where value can fall as well as rise.

best cash ISA at the moment seems to be Halifax, 3%. Of course that means that you are losing value after inflation, but that is the case for all savings accounts at the moment. UK savers are being hammered and have been for years now. Only borrowers matter.

Thank you, that is really helpful