The government's decision to allow people to move money held in individual savings accounts (Isas) into stocks and shares accounts without penalty is good news for consumers with savings, it has been announced.
Financial group Investment Management Association (IMA) believes that it will be particularly positive news for those who have "sufficient precautionary savings".
Commenting on yesterday's statement by economic secretary Ed Balls, the chief executive of the IMA Richard Saunders said: "Today's announcement that the government will allow investors to move savings currently held in cash Isas into the stocks and shares component, without penalty, is most welcome."
"This is good news for savers who have built up sufficient precautionary savings in cash and who wish to access the potential returns of the stock market over the longer term."
Mr Saunders was responding to Mr Balls report on the UK savings market, where he indicated that the government wants to encourage middle-to-lower-income households to boost their money saving.
The economic secretary also indicated how the government is aiming to give more people savings account access via the Saving Gateway scheme.
Government savings proposals welcomed
Government savings proposals welcomed
Fri, 24 Nov 2006
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