Investment ISAs popular as interest rates plummet
by David Masters
Savers are increasingly turning to investment individual savings accounts (ISAs) as interest rates on cash ISAs continue to plummet.
Research by Barclays shows a 67% rise in the number of investment ISAs opened recently compared to the same period in 2008.
The bank also revealed that nearly half (45%) of investment ISA savers have already hit their £7,200 ISA allowance for this year.
One fifth of current ISA investment account holders plan to invest more into their account next year, Barclays said, whilst three quarters (74%) plan to invest the same amount as this year.
“Our research shows cash is no longer king,” said Barbara-Ann King, head of Investment Strategy at Barclays Stockbrokers.
“Whilst interest rates continue to be low, informed investors are taking advantage of the potential long term returns from investments.”
She added: “We are delighted to see investors actively taking advantage of their tax free allowance despite market volatility, and it’s encouraging to see their outlook remains positive for the next tax year.”
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Tags: Barclays, cash ISA, interest rates, investment ISA, Isas, research, savings, stocks and shares, stocks and shares ISA
