Mar 14 2008
A majority of investors in the UK are unsure about the usefulness of individual savings accounts as a part of a portfolio of assets, recent research has suggested.
Investment fund firm New Star has revealed that only two in five of all the investors it polled recently said that they had put their cash into an Isa product.
Close to two-thirds of people who have other assets expect to allow their tax-free Isa allocations to go unused this year, while many were uncertain about which kind of Isa they would prefer to invest in if they were obliged.
Many people use Isas as a way of saving for children and New Star's research suggested that cash-based accounts are the most popular variant among people with a range of investments.
"The opportunity cost to investors over the long term from both a tax and investment perspective could be significant," said Richard Wilson, marketing director at New Star.
"Above all else, this research highlights the need for investors to seek independent financial advice."
Earlier this week, the government announced that British parents no longer need to use the physical child trust fund vouchers they are issued when looking to open such a new account on behalf of their son or daughter.
