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Cash ISA popularity grows amongst savers

Cash ISA popularity grows amongst savers

Category: Savings

Updated: 15/09/2009
First Published: 15/09/2009

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 It is now over 6 months old so the content may be out of date.

People's attitudes to saving and investment are changing, with increasing numbers of investors seeking security from investing in cash.

New research from Scottish Widows has revealed that 42% of savers are now choosing a cash ISA for their long term investment needs, compared with just 33% last year.

Of concern, however, is that 45% of people still believe that property usually or always provides better returns than other investments, despite the uncertainty seen in the housing market in recent times.

The result is even more surprising, given that 36% of people thought that owning a property this year was not as good an investment as before, due to the changing market conditions.

Furthermore, only 8% of people investing for the long term chose property as their long term investment product choice.

"It is good news that more people are choosing ISAs as their investment vehicle this year, but the number still relying on the idea that property provides better returns than other investments is alarming," said Anne Young, savings expert at Scottish Widows.

"Another reason that our love affair with property is potentially dangerous is that it can distract people from the benefit of diversifying into other asset classes such as traditional savings vehicles. It is important to save, even a small amount, to get into a saving habit and build up some easily accessible capital."

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