Isa allowance "minimal value to savers"

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Isa allowance "minimal value to savers"

Fri 26th Mar 2010

Martin Bamford, chartered financial planner for Informed Choice, stated that the new measures may help to make a nominal yearly income tax saving but returns would be small.

He said: "The new measures will be of minimal value to savers, particularly in the current low interest rate environment."

According to the Fair Investment Company, 76 per cent of investors are reluctant to invest in cash because of low interest rates.

Nick Scarrett, head of pensions and investments at the organisation, stated that the average cash Isa rate is currently at 2.12 per cent.

A survey produced by his company showed investors generally favoured high-risk assets over cash Isas because they provided a higher return and nearly half said they would choose a structured product, while almost a quarter preferred equity funds.

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