ISA sales at 'record levels' in 2006

Sales of Individual Savings Accounts (ISAs) reached record levels in 2006 – a sign that Brits are getting serious about saving for the future.

A report by research firm Datamonitor found that tax-free mini cash ISAs are popular because they are more attractive than a standard savings account.

However, fund based ISAs have declined over a prolonged period, according to separate research by Investment Manager Association.

Commenting on the findings, Jason Hollands, from F&C, said: "Returns have improved over several months thanks to interest rate rises.

But he said a better measure of the "appetite for long-term savings" will be when investors begin returning to the markets.

In recent weeks, many experts have expressed concerns that turbulence in the markets has dented the confidence of Brits looking to invest for pension reasons.

The Pensions Advisory Service has advised that those looking to retire in the very near future should see if they can delay receiving their pension because of falling values.

Source material: Headline Money press release

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