Savers “disillusioned” with ISA returns
ISA investors are “disillusioned” with the returns they are receiving on their savings, Barclays claimed this week.
The bank blamed the frustration on historically low interest rates.
The 0.5% base rate has caused many investors to rethink their approach to the financial marketplace, Barclays said.
Research by the bank found more than two-thirds (72%) of investors have changed their outlook because of the low interest rate environment.
A similar number (72%) have diversified their investment portfolio, the study found.
Barbara-Ann King, head of investments at Barclays Stockbrokers, said “We expect that investors will take advantage of increased Investment ISA contributions for the next tax year when the new allowances become applicable to all.
“Significant sums of money can be invested tax-free, for example a married couple could invest £34,800 tax-efficiently over the next month, or £40,800 if they are both aged 50 or over.”