ISA sales fall by 70 per cent in January

ISA sales fall by 70 per cent in January February 28

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Sales of individual savings accounts (ISA’s) fell by 71 per cent during January, prompting concerns that higher interest rates are beginning to affect investments.

Figures released by the Investment Management Association (IMA) show ISA sales of £31.1 million for January, down from £107.1 million the previous month.

Funds under management in ISA accounts suffered a slight drop, slipping to £51 billion, though the IMA confirmed that this figure still represents an 11 per cent rise on last year.

Sales across all investment funds were also significantly down at the start of the year, falling to £892.4 million in comparison to £1.07 billion during the same period in 2006.

Commenting on the statistics, Richard Saunders, chief executive of the IMA, said: “2007 opened with a relatively quiet month by recent standards, but net inflows from investors were still very healthy at just under £900 million.”

These latest figures come as it as revealed that many UK consumers have a lack of awareness about ISA’s and their benefits, with only 39 per cent claiming to know that they were allowed to invest in a maxi ISA every tax year.

Written Exclusively by AdFero for ISA Guides

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