Sep 13 2007
Cash-based investments have stolen the show in recent months when it comes to individual savings accounts (Isas), one expert has asserted.
Reflecting on the latest figures from Datamonitor and the Investment Manager Association, Jason Hollands from F&C Investments insists that UK consumers are generally opting for cash Isas ahead of stock-based savings products.
However, Mr Hollands suggests that the popularity of cash-based Isas might not mean the "savings bug" has yet taken hold across the country.
"My hunch is that this is simply money that would otherwise have been in a conventional savings account," he said.
"A better measure of the appetite for long-term savings will be when investors start moving from cash back into the markets," he added.
Figures released by HM Revenues & Customs in July showed that the 2006/07 tax year saw more investment in Isas across the country than in any previous 12-month period.
