ISAs & PEPs news
Government research supports ISAs
12 December, 2007
Research published by HM Treasury and HMRC shows that ISAs are beneficial to savers in every walk of life.
The appeal of ISAs is largely due to consumers’ familiarity with the scheme, its flexibility, and increased appeal for long-term savings, according to the research. Even amongst those who are not currently saving in ISAs, only 6% claim to have never heard of ISAs and only handful said that ISAs are too complex.
When asked what kind of savings and investments they hold, ISAs are the fourth-most popular after: current accounts (85%), cash deposit savings accounts (58%), and property (43%). In the study, more people report holding ISAs (39%) than pensions (37%).
ISAs are flexible and allow savings as and when savers are able. 25% of respondents in the Government’s survey make multiple payments per year, while just under 20% make a single lump sum each year. 27% have made only one payment when they opened the account.
The survey reveals that when respondents were asked about the relationship between their ISA and pension savings, 60% are using these vehicles in tandem, while a considerable number, 30%, reported saving in ISAs instead of pensions.
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