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UK investors have pumped billions of pounds into cash ISAs, even though interest rates have been rock bottom since 2008. Not one cash ISA available today is even paying enough to cover the rate of inflation.

With 80% of ISA holders having Cash ISAs, this is just barmy! It is not just historic money–in 2015-2016, some £60bn of new money went into these awful products.

What does this mean in real terms? Suppose you put £1,000 into a cash ISA 10 years ago. Today it would be worth–wait for it–just £900. Who thinks that is a good investment?

Let’s look at how cash ISAs stack up against the F.R.E.S.H investment criteria?


So the reality is that cash ISAs are pretty good against four of the five key criteria for F.R.E.S.H investments, which makes it easy to understand why so many people are hoodwinked into investing.

But the one element that is missing is by far the most important. Having an annual return of frequently less than 1% annually leaves no room for enjoying life or even surviving.

Let’s take a simple example. You’ve put £100,000 into a Cash ISA. You do very well–you’ve managed to get 1% annual interest. That equates to just £19.23 a week. I’m not sure about you, but most of us would not consider £19.23 any kind of useful amount to contribute to our living expenses.

And yet £100,000 is a significant amount to save.

Alternatively, if you chose a F.R.E.S.H investment which met ALL the criteria above, let’s say at a modest 10% annual return, what difference would that make?

Now your £100,000 is producing £192.23 a week. Many of us would consider that a useful amount.

You might say that your cash ISA is very low risk. I’d say exactly the opposite. If you need money to live on, and you are receiving £19.23 a week, then there is a certainty that you cannot meet your needs. In which case you are going to have to start using up your capital. This has two bad effects–firstly, the weekly income starts reducing below £19.23 (what a joke), and secondly once your capital is gone you have nothing.

So there is a 100% risk guaranteed that you cannot meet your financial goals.

Now suppose you have the opportunity to achieve a 10% return, albeit at a slightly higher risk? You know have a good chance of doing far better – and very little chance of doing worse than before.

I don’t know about you, but if you said keep my money in a cash ISA at 1% a year, or look for a F.R.E.S.H investment at 10% a year, I know what I’d be doing.

Ask for a copy of my F.R.E.S.H investment special report and discover how you can turbocharge your income from your currently disastrous cash ISA!