HMRC confirms investors using ISA in record numbers
HMRC’s recent publication of ISA statistics confirmed that record number of investors are putting their savings into the Government’s flagship savings scheme—the ISA. Preliminary numbers through the third quarter of the 2007/8 Tax Year show significant increases in most areas.
The first three quarters of that period saw the most people subscribing the most money into ISAs since the scheme was created. Stocks and shares continue to be well-liked despite market turbulence and cash is stronger than ever. In the first three quarters of the 2007-2008 Tax Year, a record number of consumers invested nearly £26 billion in ISAs and puts it on course for another record-breaking year.
More Accounts
- There were more investors placing money in ‘mini’ Stocks and Shares ISAs than ever before—1.4 million accounts were subscribed to. This is a year on year increase of 7.6% from last year.
- More Cash ISAs were opened than ever before, with over 9 million investors choosing the ISA for their cash savings.
- The number of Maxi ISAs subscribed to remained broadly consistent with last year (slightly down by a tiny 0.7%), with nearly 1.3 million accounts.
More Monies Saved
- The first three quarters saw monies invested in ‘mini’ Stocks and Shares ISAs rise sharply by over 15% year on year to break the £2billion threshold for the first time ever. (£2.06 billion)
- Monies saved in Cash ISAs rose by 5.3% to nearly £18.1 billion.
- Subscriptions made to Maxi ISAs were at their highest level for 5 years with £5.6 billion invested.
TISA Director General Tony Vine-Lott said,
‘In the first three quarters of the 2007-2008 Tax Year, roughly 11 million people invested £25.7 billion in ISAs despite considerable uncertainty in financial markets and some rather mixed commentary in media. These numbers are the most powerful evidence possible to demonstrate consumers’ affinity for ISAs and their viability into the future—which the Government has made clear is without question. Looking into the future, we eagerly anticipate early feedback from consumers on how the simplified ISA regime is meeting their savings needs.’
NOTES TO EDITORS: TISA is the trade association for the retail financial services sector. TISA works to improve tax incentivised savings schemes and promotion of savings in the UK. TISA works closely with industry, parliamentarians, HM Treasury, HM Revenue & Customs and the Financial Services Authority to enhance and improve the range, features, benefits, promotion and quality of savings schemes available to all savers in the UK. These include Individual Savings Accounts, Child Trust Funds, personal pensions, employer-based schemes, and other consumer-centric, Government savings schemes and savings initiatives. For more information visit www.tisa.uk.com or email enquiries@tisa.uk.com
For more information, please contact:
Jacob Coy, Cicero Consulting +44 7900 392 531 or jacob.coy@cicero-europe.com
Tony Vine-Lott, Director General of TISA +44 1372 374 728 or 0790 006 108 or tony.vinelott@tisa.uk.com