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ISA sales soar in 2009

ISA sales soar in 2009

Category: Savings

Updated: 02/02/2010
First Published: 02/02/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

ISA sales hit an eight year high in 2009, reversing a trend of net outflows from the sector, figures show.

Net retail sales amounted to £2.8 billion in 2009. By contrast, the previous five years have all ended in net outflows from ISAs, with £1.6 billion leaving accounts at its peak in 2008, according to the Investment Management Association (IMA)

In the run up to the 2010-11 ISA season, savers and providers alike will welcome the news that 2009 was the best year for ISA sales since 2001, when net sales of £2.4 billion were achieved.

ISA funds under management reached £93.8 billion in December – the fifth highest month ever recorded – and ensured sales in 2009 finished 27 per cent ahead of 2008 (£73.6 billion).

"It is good to see people once more investing via ISAs, after five years in which ISAs saw higher levels of withdrawals than investments," said Richard Saunders, chief executive of the IMA.

The return to favour for ISAs has helped fund sales record a record year; net retail sales amounted to £25.8 billion – 45 per cent more than the previous best year. Bonds and equity sales both enjoyed a positive year.

Net retail sales totalled £3.8 billion in 2008, a sixth of the 2009 total.

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