ISAs fuelled March savings increase

ISAs fuelled March savings increase

The Nationwide Savings Index saw a three-point uplift in March, fuelled by savers topping up their ISAs at the end of the tax year.

February to May is typically the busiest time of year for ISA providers, and March is the busiest month within this ISA season.

Nationwide said an improvement in the perception of government policy is encouraging people to save.

The building society added that April will also be a busy month for ISA providers as savers open new ISA accounts.

“Last month I said that, as we approach the end of the tax year, we would expect to see more people open or top up their ISAs before they lose this year’s annual ISA allowance forever,” said Andy Hutchinson, Nationwide’s head of savings.

“This certainly seems to be the case and we expect to see around two thirds of the total ISA business in the savings industry happen between February and May.”

“Now that the new tax year has started, some savers’ attention will be switched onto saving as early as possible in an ISA to maximise their tax benefit.

“With this in mind, it wouldn’t be a surprise to me if the Savings Index rose again in April. There has already been a nine- point increase since January 2010.”

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