Stocks and shares beat cash ISAs despite high interest rates

Exclusive analysis for MoneyWeek shows that the stock market beat cash ISAs last year - and when inflation is factored in, cash savers actually made a loss. We run through the figures.

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Cash savers have enjoyed rising interest rates over the past two years, with savings rates hitting a 15-year high.

This has encouraged record amounts of money to go into cash ISAs. Analysis by the Bank of England shows net inflows of £12.3 billion went into cash ISAs in April 2024, the highest inflow since 1999. This was followed by a record month of net inflows for May at £4.2 billion, the highest May figure on record.

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Cash ISAs versus stocks and shares ISAs
Header Cell - Column 0 1 year5 years10 years20 years
Nominal total returnRow 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Row 0 - Cell 4
Average Cash ISA2.7%5.5%12.2%53.4%
Average Global equity fund12.7%65.7%141.8%395.8%
Average UK equity fund7.4%31.6%55.8%257.0%
CPI3.9%23.4%32.7%70.8%
Row 5 - Cell 0 Row 5 - Cell 1 Row 5 - Cell 2 Row 5 - Cell 3 Row 5 - Cell 4
Real total return (with inflation factored in)Row 6 - Cell 1 Row 6 - Cell 2 Row 6 - Cell 3 Row 6 - Cell 4
Average Cash ISA-1.2%-14.6%-15.4%-10.2%
Average Global equity fund8.4%34.3%82.2%190.3%
Average UK equity fund3.3%6.6%17.4%109.0%
Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.