Buying UK stocks is like buying a mouldy fruit, experts have warned. While the produce might be cheap, relative to what you’d get in other markets, savers could miss out on juicy returns.
Over the past decade, the returns a saver would get from investing in the UK stock market have been three times lower than what the US market has offered.
Despite this, Chancellor Jeremy Hunt is encouraging British savers to invest more of their money here in a British ISA. How will the British ISA work – and will it ever come into fruition? More importantly, why could you be worse off? i explains.
What is a British ISA?
ISAs, or individual savings accounts to give them their full name, are savings products, where people do not pay tax on the returns they make.
British savers can currently invest £20,000 per year in cash, stocks or shares, innovative finance and Lifetime ISAs.
In the Budget last week, Hunt proposed creating a UK ISA, also known…
