New figures from the Investment Management Association (IMA) suggest that savers are looking beyond high street banks in order to secure a better return on their money. Investment fund sales rose by £25.8 billion last year – an increase of 45 per cent. This took the total amount of funds under management to £480.8 billion, the highest level ever, and a significant increase on last year’s £361.7 billion.
The trend has not surprised many experts, who have cited the poor interest rates being offered by banks on savings accounts, bonds and other forms of investment. With the Bank of England cutting interest rates to record low levels, banks have followed suits, with some banks offering rates of just 0.1 per cent, or even zero in some cases.
Surprisingly, the IMA revealed that ISA sales enjoyed their best year since 2001, with £2.8 billion invested in the tax free savings accounts . This high level of investment is surprising considering the meagre rates offered on most ISAs, with recent research exposing how many savings accounts are paying more lucrative returns than some ISA deals.
Savers Looking Beyond Bank Deals
Financial Services > e-banking > Banking news
Savers Looking Beyond Bank Deals
Wed, 03 Feb 2010
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