26 March 2009
26 March 2009
– Brewin Dolphin reports record ISA sales –
Brewin Dolphin, the UK’s largest independent private client investment manager, is witnessing a record year for ISA sales with current subscriptions totalling £103 million. With just two weeks until the end of the ISA selling season Brewin Dolphin estimates that subscriptions could increase to £125 million.
ISAs are now becoming increasingly popular thanks to the credit crunch that has beaten down other savings options and resulted in the lowest base rate ever. Currently, weak rates on cash have seen more individuals opt for stocks and shares ISAs for potentially better returns – figures from the British Bankers Association highlight that withdrawals from cash deposits in January 09 totalled £2.3 billion, as returns fell to the lowest since records began. Savers can also invest more in stocks and-shares ISAs as the investment limit is £7,200 compared with the £3,600 maximum of a cash ISA.
Charlotte Black, Director of Corporate Affairs at Brewin Dolphin, comments: “With interest rates having dropped to almost zero, it is inevitable that cash ISAs offer a poor return today, but a stocks and shares ISA is another option – allowing investors to take a long term view of how to invest; whether it’s in corporate bonds or keeping the cash until deemed safer to invest in riskier, but potentially more profitable assets.
“Investors need to think carefully about maximising this year’s tax-free allowance, and the ISA provides one of the few remaining tax breaks for savers – the key is to use the allowance before the 5 April deadline as it is almost certain that taxes will increase from here on out. With two weeks to go, savvy savers should act now.”
You should not consider corporate bonds, or corporate bond funds to be a direct replacement for cash because there are fundamental differences. Unlike cash the value of bonds will go up and down, and until the successful maturity of a bond you cannot guarantee to final return.
-Ends-
For further enquiries please contact:
Claire Barry / Lucy Willatt
HSQ
Telephone: 020 7796 4133