Ian Winstanley of Edinburgh has already given up on cash Isas.

He says: "I no longer hold cash Isas because they are losing the battle against inflation. I have converted mine to stocks and shares Isas. I had a major rejig of my existing holdings last summer and moved my cash Isas into Fidelity Moneybuilder Dividend, an equity income fund."

Mr Winstanley, 69, and has other stocks and shares Isas too, likes to take an income from his Isas. "When you are my age you need the income and that is another reason why I think stocks and shares Isas are better than the bank and building society version because with shares there is a good prospect that your income will rise."

Loading article content

He is sanguine about fluctuating share prices. He says: "My philosophy is that the longer you invest, the more time you have to ride out temporary falls in share prices."