Stocks and Shares ISA switch could boost income-Fidelity

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Income investors who have built up savings in cash ISAs over the past decade may wish to consider rolling some of their holdings into Stocks & Shares ISAs, says Fidelity International.

With the Bank Rate at 1% the average rate on a Cash ISA is now only 2.1% so a saver with the average investment of £2,200 in a Cash ISA would receive a projected annual income of just £46.20. This is less than half the projected annual income at the end of last year's ISA season of £105.82 when the interest rate on £142bn held in Cash ISAs was 4.8%. However, Fidelity draws attention to the fact that since 6 April 2008 holders of Cash ISAs have been able to transfer money to Stocks & Shares ISAs. The new rules apply retrospectively so investors can transfer some or all of their Cash ISA ...

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