Investors turn to ISAs to save cash from tax

CONSUMERS are turning to equity Individual Savings Accounts?(ISAs) in a show of strength for the product.

Seventy per cent of investors believe it is important to take out a stocks and shares ISA each year, according to the Investment Management Association (IMA).

One third of investors also planned to invest the maximum £10,200 an equity ISA allows for this tax year.

It also found investors flocked to the products after chancellor Alistair Darling upped the allowance from £7,200 in order to encourage saving.

Families with young children and 35-54 year olds were the most likely to take out an equity ISA.

IMA chief executive Richard Saunders said: “The product has been enjoying something of a comeback in the last couple of years when we look at our sales numbers.

“With the crisis and onset of recession people have been saving more, bank interest rates are low as well, so bank deposits aren’t as attractive.”