Cash-based individual savings accounts (Isas) are currently proving more popular than their share-based equivalents, new figures show.
Data released by Virgin Money shows that 7.38 million cash Isas have been opened this tax year compared to 2.49 million equity Isas.
However, it also found that equity Isas tend to outperform cash Isas over a three or five year period.
Scott Mowbray, Virgin Money spokesperson, said: "The poor performance by stocks and shares in the past twelve months has inevitably pushed investors towards cash Isas.
"But if you took that view five years ago you'd be kicking yourself now as shares have consistently performed well compared to cash."
Last week, David Dalton-Brown of Fidelity FundsNetwork called on the government to allow people to transfer money between equity Isas to cash Isas.
He added that the amount of money people are allowed to save in an Isa should be increased.
Cash Isas more popular, survey shows
Cash Isas more popular, survey shows
Wed, 26 Mar 2008
Recommended links
UK savings portalSavings enquiry form
Compare savings accounts and rates of the day
Introduction to ISAs
Types of Isas available
The benefits of Isa investments
Guide to switching ISA providers
Compare ISA providers
Compare cash isa accounts
Compare equity isa accounts
Cash accounts 'not appropriate' for long-term savings
BSA calls for further Isa changes
<% Randomize: ord=int(rnd*1000000000) %>
 %>?)
| savings news |
|---|
| Skipton launches new savings bonds - Wed, 19 Nov 2008 |
| Take out a fixed savings account now, expert urges - Mon, 17 Nov 2008 |
| Credit unions offer good savings accounts, CEO claims - Fri, 14 Nov 2008 |
| More News |
