Finding the right way to make your money grow

In a constantly evolving market for savers, it’s not easy to pick which ISA best suits you. But help is at hand...

What type of individual savings account is best for you? Should you opt for the relative safety of a cash ISA or embrace the higher-risk, higher-reward route of a stocks and shares ISA?

The answer depends on your personal circumstances, financial situation, longer-term investment requirements, and attitude to risk.

If you are putting together a rainy-day fund to cover unforeseen emergencies, then an easy-access cash product may fit the bill.

However, there are also downsides to cash ISAs, according to Darius McDermott, managing director of FundCalibre.

“While a cash ISA might look like a safer bet after last year’s stock market falls, even the best rates are still much lower than inflation, so the value of your money is being slowly eroded,” he says.