Spotlight on Isas - March 2012
Despite the fact that people can put money into their Isa all year round, there is always a last minute rush, in an effort to persuade people to make sure they have made the most of their allowances in the right tax year.
The season even extends beyond the end of the tax year, to sell the idea of Isa saving for the next tax year, for those who are more organised.
Isas have been one financial product that has been very successful. The full amount that can be invested in an Isa is now £10,680, which can all be put into stocks and shares, or broken down with up to half going into a savings account.
Isa savers saw a big jump in their allowances in 2010, when the allowance for stocks and shares Isas rose from £7,200 to £10,200.
But the financial services sector has had a struggle on its hands. Stock market volatility and poor cash savings rates, combined with general economic malaise have meant that Isa saving has not been what it was.
In January alone, the IMA reported a net outflow from Isas of £117m, the fourth month in a row that has seen negative sales, many from the UK All Companies funds.
Clearly the fund management industry has a task on its hands if it is to persuade investors to have confidence in saving again.
This special report is in association with Cater Allen. For product information, click here.
IN THIS REPORT
The tax breaks and allowances associated with investing in Isas deserve close attention
Advice on cash Isas often boils down to shopping around for a better deal and reviewing existing arrangements
This year’s most popular Isas are characterised by a diversity in asset class and country specification
They may be synonymous with investments but the world of structured products can also suit the more risk-averse client.