Poor ISA sales ‘due to interest rate hikes’

Poor ISA sales ‘due to interest rate hikes’ March 2

Filed under ISA News by Isa guides | 0 comments

Disappointing ISA sales have been put down to increased interest rates.

Jason Hollands, head of communications for investment firm F&C, believes that three interest rate rises since August have constricted demand for ISA’s as many households are now concentrating on paying their mortgage, rather than investing in savings schemes.

He has also suggested that the recent stock market blip might have a similar effect.

“IMA figures for net industry ISA sales have been suggesting a disappointing trend, down 71 per cent in January from the previous month and down 62 per cent year on year,” he said.

“Our hunch is that this is partly due to the three interest rate hikes since August which may be prompting potential investors to focus on paying down mortgages and credit debt rather than commit to the stock market.

“The sharp falls in global equity markets this week could well unnerve potential investors further.”

However, it has been noted that market set-backs present investors with excellent opportunities to buy shares at low prices, and it is hoped that this will lead to an upturn in fortune for sales of ISA’s before the April 5th deadline.

Written Exclusively by AdFero for ISA Guides

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