Boom for stocks and shares Isas, says investment body
Individual Savings Accounts (Isas) invested in stocks and shares proved attractive in the run-up to April, an industry body has said.
Net sales reached £956m from 1 March to 5 April, known as the Isa season, according to the Investment Management Association (IMA).
This was the highest level during that period for nine years.
Net sales over the financial year reached £3.7bn, after the annual allowance of tax-free investment rose.
The limit for saving in a tax-free Isa increased again to £10,680 in April, of which half can be saved in cash.
The total amount, which rose from £10,200, can be invested in a stocks and shares Isa.
In the future, the limit will rise each April in line with the RPI measure of inflation.
Richard Saunders, chief executive of the IMA, said people often saved more in a recession, and the closure of more generous pension schemes had led some people to invest in stocks and shares Isas.