An expert for the financial industry recently commented that an uptick in deposits made into ISAs for 2010 is hardly surprising, considering the current state of the post-banking crisis economy which has led to an above target inflation rate for the past several months.
Official data released recently from HM Revenue and Customs have made it obvious that there is a heightened demand for UK banking customers to utilise such savings account programmes as cash ISAs, leading to increased deposit figures into such financial instruments for the 2009-2010 fiscal year. In a comparison with the 2008-2009 year figures, there has been a29 per cent rise in the total amount of deposits made to stocks and shares accounts, nearly one third higher than previous.
The uptick has been completely unsurprising to online financial services provider Fair Investment Company’s head of investment and pension research, George Ladds. Mr Ladds commented that the newly increased allowance for ISA savings, which has been now set to an annual rate of £10,200, up to half of which may be deposited to a cash account, has been understandably popular in light of the global economic downturn.
Mr Ladds also added that the higher rate of deposit could very well have been influenced by the current practise of many high street banks this year of cutting their rates on their savings products, further prompting customers to seek out financial offerings with a higher return on their investment.
In a related news story, Principality Building Society announced their launch of a new ISA savings offering with a 12 month rate of one per cent in an attempt to capitalise on the newly publicised trend regarding an increase in the amount of cash customers have been depositing into said accounts.