You are here: Home - Investing - Experienced Investor - News -

ISA investors plough more into stocks and shares as interest rate fears set in

Written by: Adam Lewis
The amount of money invested into ISA schemes jumped £1bn in the 2015/16 tax year, hitting £80bn according to new statistics from HMRC.

Despite investor confidence falling back to levels last seen in 2008 around the time of the global financial crisis, the amount invested into stocks and shares ISAs hit £21.4m, up from the £17.9m invested in the 2014/15 tax year.

However, maybe reflecting the record low interest rate environment, the amount invested into cash ISAs fell from the £61bn invested in 2014/15 to £58.8m in the last tax year.

According to HMRC at the end of 2015/16 the market value of ISA holdings stood at £518bn, which represents a 7% increase compared with the value at the end of 2014/15.

The amount invested into Junior ISAs meanwhile rose to £921m in the last tax year, up from £582m in 2014/15. However unlike their adult cousins, the preference of savers into these products was cash, which accounted for nearly 60% of the total 738,000 products on offer.

Danny Cox, a chartered financial planner at Hargreaves Lansdown, says the record subscriptions to stocks and shares ISA are a reflection of interest rates being at the lowest of the low. As such, for those happy with the addition risk, he says “equities are pretty well the only game in town for yield, for those happy with the additional risk”.

“Savers and investors still understand the longer term benefits of sheltering their hard earned money from tax,” Cox says. “ISAs remain the saver and investor’s friend and should form the foundations of good, blue-chip portfolio planning.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Mortgage lending held steady in July

Despite Brexit, lending was robust in July compared to June.