Don’t forget that you have a £20,000 Annual allowance each tax year before the 5th April! This allowance has not increased for 6 years now.
Investing in a stocks and shares ISA means taking some risk with your cash in the expectation that it will grow faster.
A cash ISA may seem the safest option but the rising cost of living could be eroding the value of your savings if the interest you are earning is eclipsed by the rate of inflation.
While you will benefit from the tax-efficiency of cash ISAs and stocks and shares ISAs, the latter can be more appealing in a high inflation, low interest rate environment.
However, keep in mind that investments are always a risk and you can get back less than you initially put in. It’s important to check that your investments match your risk appetite and capacity for loss and a Financial Adviser can help to guide you through this.