Consumers choosing ISAs, says BSA

Consumers are increasingly turning to individual savings accounts (ISAs) in response to economic difficulties, it has been claimed.

According to the Building Societies Association (BSA), worries over the flexibility of money have led to a rise in the number of people turning to this form of investment.

Spokesperson Rachel Le Brocq said that the savings accounts represent an attractive option because they are “effectively tax free”, while both cash ISAs and stocks and shares ISAs are available.

“It gives you the flexibility of the choice and it’s a very tax-efficient way of saving, so you earn more interest on your money,” she added.

Ms Le Brocq was commenting in the wake of findings by the BSA that building societies have seen record savings inflows in the first half of this year, with nearly £6.3 billion being invested.

Last year research commissioned by Britannia found that almost half of all adults in the UK have never had an ISA.

© Adfero Ltd

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