Important information – investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in.
Tax rules can change and their benefits depend on your circumstances. Inflation reduces the future spending power of money. This isn’t personal advice – please ask for financial advice if you’re not sure what’s right for you.
The differences between saving and investing
Whatever your goals, putting money aside now can give you a better chance of having more in the future.
You can do this by holding spare money as cash savings, or by investing in other assets, such as shares, funds, or bonds.
Saving tends to be for the short to medium term while investing should be for the longer term (more than five years).
Learn more about the differences between saving and investing
ISAs can be great for both saving and investing
ISAs can help you save tax. Once money is paid into an ISA, it's then protected from both UK income and capital gains tax.
Each year, you have an ISA allowance. The adult ISA allowance for the current tax year is £20,000. But remember tax rules change and the benefits always depend on your situation.
It’s up to you whether you save or invest your allowance and you can choose from different types of ISA.
Two popular options include Cash ISAs (for saving) and Stocks and Shares ISAs (for investing).
Consider a Cash ISA if:
- You’d like easy access options for savings, that you can withdraw at short notice in case of emergencies
- You’d like fixed-term options for savings, that you’re happy to commit to for a fixed period. You’ll typically get a better rate by choosing to fix - choose from a few months, to a set number of years
- You understand inflation can erode the spending power of your savings over time if your savings rate is lower than inflation
Think about a Stocks and Shares ISA if:
- You've already built up cash savings for emergencies
- You’re saving for a long-term goal and won’t need the money for at least five years
- You want the chance to grow your money more than it might in cash savings
- You’re comfortable with the additional risks of investing and understand you could get back less than you invest
The best of both?
You don’t need to choose between putting all your money in a Cash ISA or a Stocks and Shares ISA. You can mix and match, splitting your £20,000 allowance according to your goals.
If you choose to split your allowance with HL, you’ll be able to check in on both of your ISAs in one place.
HL Cash ISA
HL Stocks and Shares ISA
Get great rates with our unique Cash ISA.
- Spread cash across multiple banks and building societies
- Choose from fixed term, easy access, and limited access savings. All in the same tax year, in the same online Cash ISA
- Pay no UK income tax on the interest you earn
A simple way to invest free from UK tax.
- Choose your own investments or pick from ready-made options
- Start from £100 lump sum, or £25 a month
- Growth and withdrawals free from UK tax
Why choose HL for your ISAs?
- Security - we're a FTSE-listed company and the largest investment platform in the UK for private investors, with £130bn in assets under administration, and trusted by over 1.8 million clients
- Ease - check your ISAs anytime online or with the HL app
- Choice - from great cash rates to a wide range of investments
- Award-winning - we've won over 200 awards, including Best Online Stockbroker 2022/2023 by the Personal Finance Awards, and Best Buy ISA 2023 from the Boring Money Best Buys Awards
- UK-based helpdesk - speak to our customer support team if you have any questions
Learn more about ISAs
The HL Cash ISA is provided by Hargreaves Lansdown Savings Limited (HLSL), registered in England and Wales (company number 8355960) and authorised and regulated by the Financial Conduct Authority (register number 915119). HLSL is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 with reference 901007 for issuing electronic money. HLAM and HLSL are subsidiaries of Hargreaves Lansdown plc (company number 2122142).