Mar 25 2008
Cash-based individual savings accounts (Isas) are considerably more popular with British investors than their stock-linked equivalents, according to recent figures.
Data from Virgin Money has demonstrated that cash-based Isas, which are often used by people saving for children, are being opened at almost three-times the rate of those that offer exposure to the stock market.
In addition to more cash Isas being opened, these accounts are attracting greater investments from savers on an annual basis, Virgin Money reports.
Over the course of the past 12 months, there have been around 7.38 million cash Isas opened in the UK, compared to 2.49 million equity equivalents, the financial services firm has established.
"The poor performance by stocks and shares in the past twelve months has inevitably pushed investors towards cash Isas," said Virgin Money spokesman Scott Mowbray.
Last week, Fidelity FundsNetwork called on the government to increase the limits on cash-free interest that Isas can offer British parents and other investors.
