LONDON, 17 March 2011 - Investing in tax-free cash ISA products "is a false economy" for UK savers, says finance magazine Investment International, citing analysis from what it calls "the UK's leading gold investment service", BullionVault.
"Bullion Vault believes that private investors should put their money where it will produce the highest rate of return, not where it will do the most damage to the taxman," says Investment International, noting that ISA interest rates - like all UK bank savings accounts - are now well below the rate of inflation.
"The label 'Best buy' can be misleading if the product does not deliver a rate that beats inflation," the UK-based finance news and advice site goes on. "There is little benefit to pouring more of your money into [a cash ISA] when it does not deliver a return."
BullionVault's research shows gold significantly outperforming most equity ISAs as well. "Compared to Morning Star's list of the 4,000 top equity funds, gold is in the top 4% of funds for last year, the top 2% of funds over three years and second overall in terms of five-year returns before any Capital Gains Tax is taken into account," says Investment International.
Even after the top-rate of CGT tax, BullionVault says, gold remains "top decile" amongst the UK's approved tax-free equity ISAs in each of the last 1-year, 3-year, 5-year and 10-year periods.
You can read the full report at Investment International here...
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