Dec 11 2007
The Tax Incentivised Savings Association (Tisa) has sought to explain the popularity of individual savings accounts (Isas) in the wake of government data indicating that more and more people are investing in this way.
According to the association, the flexibility of the Isa system, whereby investments can be made at regular intervals on as a single lump sum, is a major reason why the accounts have become so well-used in the UK.
Moreover, Tisa makes clear that the accounts are a long-term savings method, noting that the Treasury found recently that the majority of Isa investors have never withdrawn their deposited cash.
"Isas are an increasingly popular savings vehicle that really appeal to the consumer," said Tisa's director general Tony Vine-Lott.
"They are well known, allow savings for a multitude of purposes while allowing flexibility that many consumers find useful, and are increasingly fulfilling a long-term savings need."
Earlier this year, Tisa reported that more than half a million child trust fund accounts were contributed to during the third quarter of 2007.
