Brits who want to keep their ISA money safe from a rumoured cut in the £20,000 allowance to £4,000 are being urged to consider a stocks and shares ISA that allows them to earn interest while they decide where to invest. Chancelllor Rachel Reeves is holding off any immediate changes to the benefits of the cash ISA, which allows savers to stash up to £20,000 a year into a deposit based cash account tax free.

But while Wednesday’s spring statement will not mention cash ISAs, the Treasury is still believed to be reviewing their future. The government has made it clear it wants savers’ cash to be used to help grow the UK economy rather than sitting in accounts.

Savers who are looking at an alternative ISA for their cash may want to consider opening a Stocks and Shares ISA account on a savings platform that pays a fixed rate of interest, says Laura Suter, director of personal finance at AJ Bell.

She said that while a cash ISA may be great for emergency saving, they are not a great place for “long-term wealth”.

“On many platforms, you can start from just £25 a month and build up from there as you get more experience and comfortable with investing.”

Suter said while Cash ISAs were useful for saving into an emergency fund, they were a “terrible place for long-term wealth”.

“Our own data shows that if you had saved £1,000 a year into Cash ISAs since they were launched in 1999 and earned the average Cash ISA interest rate, you’d have a pot worth £34,400. But this would have failed to keep up with inflation, meaning your spending power would have been eroded. In real terms, you’d have been worse off. If instead you’d invested in the average return of a fund investing in global markets, you’d have a pot worth £83,600 after that same period – almost £50,000 more.”

James Norton, head of retirement and investments at Vanguard Europe said: “We know that over the long-term stock market performance outstripped cash returns. For example, assuming an investment return of 6% a year after fees for 20 years, a £20,000 ISA would grow to just over £64,000.”

Most investment platforms will let you start with a minimum of £50 a month, so you can build up a small savings fund before you start making your first trades, many of the UK based apps include tutorials and explainers that can guide those new to investing. Once you do start investing you will have to pay a fee and an annual management charge.

Anita Wright, a chartered financial planner at Bolton James said for this reason savers should shop around and find a DIY investment apps that suits them.

“The majority of DIY investment apps offer some form of interest on cash holdings, but the rates, terms and conditions can vary significantly. As ever, it’s important DIY investors do their homework.”

Five Stocks and Shares ISAs that pay interest on uninvested cash include:

121 – 4.6%

Freetrade – 5%

AJ Bell Dodl – 4.58% AER

Bestinvest – 3.75%

Hargreaves Lansdown – between 2.3% and 3.15% depending on how much is being held in the account.

Note: There are other investment platforms available, your cash is at risk when you invest and past performance is not a guide to how well an investment will do in the future. Shares are a long to medium term investment so always make sure you feel comfortable with the amount of risk you take.