There are cash ISAs, which pay interest on your savings, and stocks and shares ISAs, where any return is based on stock market performance.
Ms Reynolds asked a House of Lords committee: “Why do we have hundreds of billions of pounds in cash Isas?… What can we do together in parliament about trying to drive an investment culture that realises cash is not a good investment, especially in a high-inflation environment?”.
Robin Fieth, Chief Executive of the Building Societies Association said: “Cash ISAs help consumers to achieve their savings goals.
The top cash ISA rate right now is 5.03% from Trading 212, while the best rate for normal easy-access accounts is 4.85% from Coventry Building Society.
The personal savings allowance is £1,000 every tax year for basic-rate taxpayers and £500 for higher-rate taxpayers, while additional rate taxpayers don't get an allowance at all.
