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Record number of ISA investors taking a chance

Record number of ISA investors taking a chance

Category: Savings

Updated: 07/06/2010
First Published: 07/06/2010

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 It is now over 6 months old so the content may be out of date.

Investor confidence seems to once again be riding high after it was revealed sales of stocks and shares ISAs had risen to levels not seen for nine years.

According to official figures from the Investment Management Association, sales of stocks and shares ISAs in April amounted to the highest monthly figure seen since April 2001.

An overall figure of £1.2 billion was 56% higher than in March and 63% more than April last year.

Interest in ISAs is likely to have been heightened by the increased ISA contribution limits which have been in force since 6 April.

ISA investors can now place a total of £10,200 per year into the tax free savings vehicles, with up to £5,100 being able to be put into a cash ISA.

Many investors will also have had their heads turned by the considerable recovery seen in the stock market since reaching a low in March last year.

However, with the stock markets having been a little less steady on their feet over the past month or so, more cautious investors are still well advised to consider cash ISAs as a viable investment.

Investors in stocks and share ISAs might well enjoy some very good returns, but there is always the chance that the bad times are not far away.

Cash ISAs, on the other hand, are similar to a normal savings account in that a rate of interest will be paid on the amount invested, giving the saver peace of mind that their investment won't dramatically rise and fall.

There is a wide variety of cash ISAs available, including instant access cash ISAs, fixed rate cash ISAs, and accounts on which the rate will vary, usually in line with the base rate.

So if you're more of a steady eddie saver than a fly by the seat of your pants kind of investor, here is a selection of some of the most popular cash ISAs currently available:

Birmingham Midshires' cash ISA offers a rate of 2.70% on a minimum investment of £500. The rate includes a 1.00% bonus for 15 months.

SAGA is offering a cash ISA with a rate of 2.60% for those savers aged 50 and over. It requires a minimum investment of £500 and includes a 1.00% bonus for 18 months.

Nationwide BS has a cash ISA account paying 2.75%. It only requires a minimum investment of £1, but includes a 1.00% bonus until 30 June 2011.

Find the best savings account for you - Compare cash ISAs

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.