ISAs increase in popularity
1st August 2008
The Building Societies Association (BSA) has said that consumers should consider ISAs because they provide a "flexibility of choice" and are the most "tax-efficient" savings.
Rachel Le Brocq, spokesperson for the BSA, said that those who invest in an ISA have the flexibility of choosing a cash and/or stocks and shares investment depending on their "attitude to risk".
She explained: "People obviously are having some worries about the flexibility of their money, and that stocks and shares obviously go up and down with the stock market, so we are seeing people putting their money into cash ISAs."
According to financial website moneyfacts.co.uk, building societies account for over 38 per cent of all cash ISA balances and the average return on a £3,000 cash ISA for this tax year was £164.51.
Latest figures from the BSA show that people are taking a cautious approach to their finances and are investing their cash in savings accounts.
In the first half of 2008, building societies experienced a record savings inflow of £6,296 million compared to £3,862 million in 2007.