ISAs suitable for modern saving
ISA’s are useful for savers in every walk of life and appeal because of consumers’ familiarity with the scheme and its flexibility, according to a Government study.
The research published by HM Treasury and HMRC suggests that ISAs are well known to most consumers. Even amongst those who are not currently saving in ISAs, only 6% claim to have never heard of them 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 vehicle after current accounts (85%), cash deposit savings accounts (58%), and property (43%).
In fact more people report holding ISAs (39%) than pensions (37%).
A quarter – 25% – of respondents make multiple payments into their ISA per year, while just under 20% make a single lump sum each year. A massive 60% of ISA holders have never withdrawn the money and over three-quarters (76%) have either never made a withdrawal or have only done so once.