ISA millionaire Lord Lee decries “tragedy” of low interest cash ISAs
The UK’s first ISA millionaire Lord Lee (pictured) says it is a “great tragedy” that so many people still have money in cash ISAs, amid concerns about rising inflation and low savings rates.
During an interview with Sky TV this morning (21 January), Liberal Democrat peer Lord Lee urged people to consider investing in British businesses and other types of ISAs, rather than earning “next to no interest” in cash ISAs.
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“To be a successful investor you only need two things – common sense and patience and in my view patience is the most important thing,” he said.
Lord Lee added that cash ISAs were “not something I can recommend,” stating: “I think it’s a great tragedy that so many people have significant amounts of money just sitting there in the bank earning next to no interest when they could have invested in so many fine UK companies that are solid investments that are growing and paying dividends.”
His comments came after a report by financial comparison site InvestingReviews identified 2,000 ISA millionaires across the UK.
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All ISA millionaires are believed to be stocks & shares ISA holders, although several Innovative Finance ISA providers have told Peer2Peer Finance News that they have attracted substantial IFISA transfers from some of their high-net-worth investors.
“Lord Lee hit the nail on the head when he expressed his concern about the number of people holding money in cash earning little, if any interest,” said Simon Jones, chief executive of InvestingReviews.
“With inflation soaring, people’s money is being eroded more than ever in real terms.”
Inflation recently reached a 30-year high of 5.4 per cent.
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