PIMA announces record Q1 ISA figures and contributions
Consumers put record amounts into ISAs in the first quarter of 2006/7 tax year, again demonstrating the increasing popularity of the Government’s flagship savings programme. The recent results published by HMRC reveal that consumers invested £13.7 bn. This sets investment to surpass last year’s record £31.1 bn.
The number of accounts opened in the quarter is up 4.2% compared with the first quarter of last year and the amount subscribed is almost 13% higher than in the same quarter of 2005.
The biggest movements were in stocks & shares ISAs. The number of Maxi-ISA subscriptions was up 10% to 949,000 with £3.2 bn subscribed – an incredible rise of 41% on the same quarter last year. Stocks and share mini-ISAs also saw significantly higher inflows with £744 mn subscribed, a 32% increase over Q1 last year. This comes in spite of a slight decrease (1%) in the total number of accounts opened.
There were 5.88 million mini-cash ISAs opened, an increase of 4.3% on the same period last year, while amounts subscribed were up by 5%.
This sustains the return to equities begun in previous quarters. The significantly greater inflows and number of accounts opened, particularly amongst stocks & shares ISAs show that consumers are either bullish about the market or are taking a longer view of their investments by placing them into equities.
[b] Tony Vine-Lott, Director-General of PIMA, said:
‘These statistics once again demonstrate how what a success the ISA is for this Government and the providers of these savings products. In only three months, nearly 14 million people choose to save through an ISA. Subscription amounts have increased, with major net inflows for equities. This move shows that consumers understand that both cash and stocks & shares ISAs have a place in their savings portfolio.
We are very encouraged by the steep take-up of ISAs, but we call on the Government to take further steps to make the ISA even more consumer friendly. The Government has the opportunity to solidify this trend of more people putting more money into ISAs by guaranteeing the regime into the future. We look forward to continuing our rich and constructive dialogue with the Government to build on this success. ’
The complete set of statistics can be found at: http://www.pima.co.uk/statistics.htm
For more information:
Tony Vine-Lott, Director-General, PIMA
07790 006108
Iain Anderson or Jacob Coy, Cicero Consulting
020 7665 9535
079 0039 2531[/b]