Savers are investing more money in individual savings accounts (ISAs) according to recent research.
Figures released by HM Revenue & Customs (HMRC) reveal that the number of savers investing in ISAs is up by 7.4 per cent.
Over £12 billion has been invested by savers in the first quarter of this year and stocks and shares are up by almost ten per cent, while cash savings have increased by over 13 per cent.
Tony Vine-Lott, director-general of the PEP & ISA Managers’ Association (PIMA), said: “The statistics released by HMRC today demonstrate the attractiveness of ISAs as an investment vehicle.
“The figures demonstrate that confidence in both cash and equity investments is growing strongly.”
Competition between high street banks for savers means that there is a wider variety of high interest savings accounts on offer.
For example, Abbey has launched a savings account open to new and existing customers with an annual equivalent rate (AER) of six per cent, while Skipton Building Society is offering a new range of one to three year fixed rate bonds with an interest rate of 4.76 per cent gross per annum.
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