ISA savers 'looking to stock market for returns'
By myfinances.co.uk staff
Low rates of interest on cash ISAs means many savers are looking to the stock market to provide the best returns on their money, a new poll has found.
According to the survey by the Share Centre, 44% of ISA investors believe equities will give them a better yield on their capital than a cash account in 2010.
Furthermore, 75% of respondents believe that since September 2009, the stock market has been a good place for savvy investors to put their money.
Another 20% of those questioned by the Share Centre said that they intend to put funds into both equities and cash accounts this year.
Nick Raynor, an investment adviser with the company, noted that with government borrowing standing at record levels, increases in personal tax are looking "inevitable".
"As such, it is imperative that investors make the most of the tax breaks available to them. One of the most accessible is an ISA," he said.
Figures from Barclays Stockbrokers show that 84 per cent of ISA savers have put money into a stocks and shares account in 2009-10, an 18 per cent increase on the previous tax year.
Comments
Newsletter sign up