![]() Prices remained high for September because of a rise in transport costs, and fell slightly because of a decrease in costs in the hospitality sector. The Consumer Prices Index (CPI) which measures the cost of a basket of goods each month, is way off the government’s target of 2%. Inflation has been steadily rising during the course of the pandemic and the latest figures show it fell to 3.1% in September, a slight fall from 3.2% in August. However, while cash ISAs are a good option for those who need access to their savings, they typically aren’t the best option when looking for a high return, especially in today’s climate where interest rates are low and inflation is rising. The majority of accounts were cash ISAs, with 1.2million more opened in 2019 compared to 2018. Around 13million ISA accounts were opened in 2019 - 2020, up from 11.2million the previous year, according to data from HM Revenue & Customs (HMRC). The tax breaks of using an ISA are a clear winner if you’re looking for somewhere to put your savings and this year saw a huge spike in new accounts being opened. ![]() Lots of people used the money to buy houses, there has been record growth in the property market in the last year, while others poured their cash into ISAs. We’re all very used to staying at home now and even though things have opened again in the UK, lots of us are still working from home and not back to the weekly commute.ĭuring lockdown, many people were able to save up because they weren’t going out as usual or spending money on luxuries like holidays or nights out. ISAs boom in popularity after lockdown savings So, is it better to choose a stocks and shares ISA or to try P2P lending in an IF-ISA? We look at the current situation, how the economy is affecting our savings, and your options when looking for the best return. ![]() ![]() Savers have been flocking to ISAs to store money saved in lockdown but with interest rates at rock bottom and inflation creeping upwards, the money is at risk of being eroded away if left in a cash ISA. 2 November 2021 / IFISA Are ISAs still the best option with inflation rising and rates remaining low?Īre ISAs still the best option with inflation rising and rates remaining low? ![]()
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