“Wake-up call” for savers as investments outperform cash ISAs for a consecutive year

Stocks and shares ISAs returned three times more than cash ISAs, on average, over the past year.

Fear of investing could be costing savers a significant amount of money, according to latest analysis by Moneyfactscompare.co.uk. It found the average stocks and shares ISA fund grew by 11.22% in the year to February 2026 – returning three times more than a typical cash ISA over the same period (3.48%). This is the second consecutive year stocks and shares ISAs have outperformed their cash counterparts.

“Cash is considered a safe choice, but investing shows the gains that could be made over the longer-term,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk. Although returns are never guaranteed, she said these latest figures should come as “a wake-up call” for anyone still hesitant about investing.

How to start investing with a stocks and shares ISA

Of the more than half of Brits (55%) who don’t have any investments, a third (33%) said this is due to not knowing enough about investing, according to new research from Aviva. It also found almost two fifths (39%) think investing is too risky and are worried about losing money.

But, while Springall acknowledged that “not every saver will feel confident enough to invest” she said starting small and getting good guidance could help to build knowledge. There are plenty of stocks and shares ISAs that don’t require substantial monthly deposits. What’s more, some platforms offer ready-made portfolios to suit different attitudes towards risk.

That being said, those who opt for an investment platform should make sure they regularly review any management fees, “as the most cost-effective choice can vary depending on the size of someone’s portfolio,” warned Springall. She also encouraged savers to “monitor their pots and consider seeking other funds if they are seeing consecutive periods of poor performance”. Some might even want to contemplate moving their pots if their risk appetite changes over time.

What were the top-performing sectors?

Rising gold prices and general demand over raw materials (such as metal and oil) influenced fund performance over the past year, said Springall. As a result, the top-performing sectors, such as Commodities and Natural Resources, returned over 28%.

However, it’s important to remember that past performance is never an indication of future returns. While Latin America was the best-performing stocks and shares ISA fund sector and returned 38.24% over the past year, it was the worst-performing sector between February 2024 and 2025 (returning -11.15%).

“Those intrigued to know how well UK fund sectors have fared over the past 12 months may be pleased to see the UK All Companies fund returned 13.72%, slightly higher than a year prior of 13.26%,” Springall added.