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Cash ISA quandary, saving tops financial priority

Cash ISA quandary, saving tops financial priority

Category: Savings

Updated: 26/04/2010
First Published: 26/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Savers have been urged to shop around for the best cash ISA deals, after it was revealed consumers intend to save, invest and protect themselves over the coming six months.

Expected activity in the areas of saving, investment, borrowing and debt repayment overall is at its highest level since June 2006, as the effects of the recession continue to play on people's mind, according to the Spring 2010 Financial Activity Bulletin from JGFR.

With the current ISA season in full flow, it appears significant amounts of money might be about to flow into the tax-free savings accounts.

A record level of 40% of the population intends to put money into an ISA over the coming six months, up from 33% a year ago, while cash ISAs, in particular, look set to prove popular.

More than a third (36%) of adults intend to place a cash deposit over the coming few months, compared with 33% a year ago.

However, with interest rates remaining low, savers are being urged to shop around to find the best cash ISA rates available.

"The credit crunch and subsequent recession have had a profound impact on consumer behaviour," said John Gilbert, chief executive of JGFR.

"The 'I want it now' model of 'borrow now pay later' may be over. Tighter household budgets and less credit availability means more focus on budgeting and saving up for purchases.

"People are also considering long term savings and investment and family protection to a greater extent."

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