Cash ISAs are effectively deposit accounts that pay interest with no tax taken off. Your capital is secure and will not fall in value. By comparison investment ISAs (or stocks and shares ISAs, as they're more commonly known) invest in the stock market and, although you can opt to invest in lower risk assets, your capital could still be at risk if the stock market falls.
Historically, over the longer term, stock market based investments have always outperformed cash deposits. However, in the short term, stock market based investments can be volatile and can go down as well as up (sometimes very sharply). The key is to ask yourself how much risk you can afford to take.
If you cannot afford to lose any money then cash ISAs would be best. If you are happy to tolerate a short term loss and are prepared to leave the investment for at least five to seven years then an investment ISA may be worth considering. However, investing in the stock market in the expectation that you'll make a quick gain is a highly risky approach and not for the faint hearted.
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