Cash ISA popularity unsurprising, says group
Thursday, 02 September 2010 09:59AM
Cash ISA popularity unsurprising, says group
Stocks and shares ISAs, on the other hand, experienced a 29% surge in funds.
George Ladds, Head of Investment and Pension Research, emphasised that the increase in ISA limit from £7,200 to £10,200 may be part of the reason behind the trend.
"The increase may also have been affected by the fact that savings rates were so low - even relatively low rates on cash ISAs were beating the returns offered by most savings accounts due their tax efficiency," he predicted.
NFU Mutual claimed in recent weeks that the Bank of England's decision to maintain the base rate at 0.5% is encouraging more people to switch from cash ISAs to stocks and shares products.
Posted by Martin Ellis
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