Investment ISAs return 3 times more than cash ISAs

The average stocks & shares ISA fund has enjoyed growth of 11.22% over the past 12 months, more than three times the average return offered by a cash ISA.

The Moneyfacts average cash ISA rate returned 3.48% between February 2025 and February 2026.

Stocks & shares ISAs have now posted three consecutive years of positive growth returns, while the Moneyfacts average cash ISA return is down compared to the previous 12 months.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Over the past 12 months alone, investing in stocks & shares has returned three times more to savers than a cash ISA, based on average returns. This should be a wake-up call for those who fear investing, as cash returns have diminished.

“However, it is important to not rely on returns over the shorter-term when making longer-term investment decisions.”

She said it was going to take a lot more than positive returns to encourage an investing culture in the UK.

She added: “Not every saver will feel confident enough to invest, but if they get good guidance, they can start small and slowly gain more knowledge to encourage them to increase their deposits.”

Moneyfacts reported that the rise in gold prices, and general demand for raw materials, like metal and oil, had a heavy influence on fund performance over the past year, with the top performing sectors, including commodities and natural resources, returning 28.83%. 

It said the sectors to bounce back from negative returns over the previous 12 months included Latin America, returning 38.24% compared to -11.15% between 2024 and 2025, with high commodity prices, political changes and currency strength observed to boost the sector.