Investors shun banks to go online for ISA savings, it is claimed

New research reveals the number of investors who bought their last ISA online via a fund supermarket or broker has increased by 37% in the last year to more than one in two.

In contrast those buying an ISA from a bank has fallen from four in ten, 42%,to just three in ten, 31%.The research was carried out by online stockbroker and fund supermarket Interactive Investor who will be accepting applications from investors seeking to take up their ISA allowance right up until midnight on Tuesday 05 April.

‘The shift towards online ISAs mimics the online shopping trend and confirms that investors are increasingly confident about investing and trading online. Investors are also more aware of the fees they have to pay on their investments and are looking for lower cost options,’ said Rebecca O'Keeffe, head of investment at Interactive Investor.

‘What is also likely is that the reputation of banks, having taken a real battering in the wake of the financial crises, are not the perceived safe haven that they once were and neither are they necessarily the best option when it comes to your investments,’ she claimed.

‘Fund supermarkets and discount brokers offer low charges and an extensive choice of available investments - from stocks and shares to funds and bonds. Investing online is quick and easy, and fees and charges are really competitive. There is a wide range of fund information and tools to help investors make their choice.  This offers an easy way for anyone to invest their ISA allowance in stocks and shares and take advantage of potential growth,’ she explained.

‘While I don't recommend investors leave securing their ISA allowance until the last minute if they do our online platform will be open for business. And if you don't want to invest your money in the markets immediately you can secure your allowance and then drip feed your money into your chosen funds or shares in the following months,’ added O’Keeffe.