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
Financial Services > Savings > Savings and Investments News
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
| savings news |
|---|
| Britons advised to take advantage of Isa allowance - Mon, 06 Sep 2010 |
| Britons told to expect wholesale changes to savings culture - Fri, 03 Sep 2010 |
| Some savings accounts baffle consumers - Wed, 01 Sep 2010 |
| More News |
Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
