A savings study found that small investors could be taking their eye off the ball when it comes to finding a ‘safe’ home for their cash that could still pay dividends. The study, compared what could be achieved by saving in a mortgage, with regard to overpayments as compared to the returns from an equity-backed ISA, and found that the mortgage option was better for those who like to play safe.
"As we near the end of the current tax year and thoughts turn to investing any free cash, it is important that people recognise all the savings opportunities available to them. Looking at the best-buy tables it is clear that a deposit account is out of the question and recent returns show the stock market is not for the faint hearted. All this means that people with a mortgage should look to divert some of their investment cash into their mortgage to reap risk-free savings," said Scott Mowbray, marketing manager at the One account.
