Stocks and shares ISAs versus cash ISAs – who’s investing in what

With interests low and the market high, it can be useful to know how others are using their ISA allowance when deciding where to stash our hard-earned cash.

Cash ISAs lead the way

At the time of writing, cash ISAs are the most popular option, it seems - perhaps because many of us like the familiarity and security of cash savings. In fact, 41% of UK adults are currently using some or all of their cash ISA allowance, while less than 10% are currently investing via a stocks and shares ISA.

A gender divide

The research also revealed men and women take a very different approach to their investments with 12% men currently saving into a stocks and shares ISA compared to 6% of women.

Plans to save more this tax year

The research done by Standard Life also indicated that 6% of people surveyed planned to use more of their stocks and shares ISA allowance in the new tax year than they did the previous year.

Do your research

While it's encouraging to see that people are researching all their ISA options, it is important to bear in mind that stocks and shares ISAs aren't suitable for everyone as they come with an element of risk. While the returns can be greater than those achieved through a tax-free interest cash ISA, the money put into different types of investments through a stocks and shares ISA could go down as well as up.