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With rising interest rates bolstering the returns generated by savings accounts, moving capital away from dividend stocks may be tempting. After all, there are now plenty of instant-access accounts offering around 5% risk-free returns. And that’s already higher than the FTSE 100’s current 3.8% yield.
Maintaining an emergency fund in an interest-bearing savings account is always sensible. But for those with a cash cushion already in place, moving the excess into an ISA in 2023 may be the far smarter move in the long run. Let’s explore why.
Volatility breeds opportunity
Considering the recent mayhem in the financial markets caused by rising inflation and interest rates, investing today may sound crazy. But in reality, stock market corrections and even crashes present some of the best times to kick-start or double-down on an investment strategy.
Why?…
