Beat the deadline investors rush to “green” ISA’s

Would-be ISA investors are keen to go green before the deadline according to research from Co-operative Financial Services (CFS).

The study reveals that of the people planning to use their ISA allowance ahead of April 6, almost seven in ten (67 per cent) are likely to consider investing in a scheme that offers a positive environmental benefit.

More worryingly, the results also show that a separate seven in 10 (72 per cent) will not be investing in an ISA during the current tax year, meaning they will lose the opportunity to take advantage of the tax-efficient benefits provided.

Zach Hocking, Head of Savings and Investments at CFS, said: “With a green ISA investors can get attractive returns without paying tax on what they earn, and help to support a more sustainable future for the environment.

“I’d urge anyone who is yet to use their allowance for this tax year to think about investing as soon as possible. Miss the deadline and the tax break is lost forever.”

Co-operative Financial Services provides ISA’s that can help benefit society and the environment. Customers that take out a Maxi ISA with Co-operative Insurance can wrap their investment in its socially responsible investment (SRI) unit trust, Sustainable Leaders Trust. The Fund has provided an impressive return of 31.8 per cent for the 12 months to 31 December 2006, significantly better than the 16.7 per cent from the UK FTSE All-Share.

Customers that prefer easy access or want to avoid stocks and shares can take out a Cash Mini ISA with the Co-operative Bank, safe in the knowledge that their money will not be used to support businesses that cause harm to the environment. The Bank is the only high street bank that has a clear ethical policy.

Recent figures from the Co-operative Bank’s Ethical Purchasing Index show that ethical investments rose by 10.5 per cent during 2005 and already equate to over £6bn.