Growth in Stocks and Shares ISAs

Investor confidence in Stocks and Shares ISAs is on the rise with the number of people regularly investing in these ISAs having grown for the sixth consecutive year, a new report shows.

Research by Halifax Share Dealing shows that in 2010/11 some 14% of ISA customers now invest regularly in a Stocks and Shares ISAs as part of their savings activity, a 20% increase on 2009/10.

The number of customers making single lump sum ISA investments has risen 11%, and although the number of multiple lump sum ISA investments has decreased, the total value of customers’ ISA deposits has risen from £5,142 to £6,719, an increase of over 30%.

 Also average ISA saving levels have increased across all investment vehicles, primarily as a result of the increased ISA limits of £10,200 per year. The average deposit has risen 40% to £5,956 - up from £4,267.

The report says that this surge in regular investments in ISAs indicates that ISA investments are now becoming an integral part of customers’ monthly financial planning. Customers are clearly factoring ISA investment as part of their financial commitments, rather than sporadically making lump sum ISA investments.

This confidence is a result of the economic climate being perceived as more steady and an increase in income levels and customer confidence in the potential of their investments growing.

‘The increase in the number of regular ISA investments being made is enormously encouraging. It demonstrates that customers are taking advantage of our tax efficient services, this is especially important in such a low rate environment,’ said Damian Stansfield, managing director at Halifax Share Dealing.

‘Regular ISA investments are becoming part of our customers’ longer term saving plans as well as an integral part of their financial management,’ he added.