Investing for beginners: When investment ISAs may not suit investors | Personal Finance | Finance

“There are two main ways to invest with ISAs, firstly you can open an investment ISA with a lump sum – for example if you’ve recently inherited some cash, received a bonus from work, or had a fixed-term savings bond expire and are looking for somewhere to put the cash,” he said.

“You can also set up a direct debit with many providers, letting you put a little away each month, after opening an account with a nominal sum.

“But before you make a decision on how much to invest, it’s essential you research the whole process to find out if you should invest or not.”

Mr Andrews went on to point out situations when investment ISAs may not be suitable.

“If you’re after a quick return on your money, investment ISAs are generally not seen as the way to go,” he said.

“While you can make double-digit returns in a year by investing in the right stocks and funds, you can also make losses – and this particularly applies over the short term.

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