Low interest rates cause surge in stocks and shares ISAs

The latest survey of 300 Halifax Share Dealing customers has shown a large number of investors (65%) are more likely to invest in a stocks and shares ISA while interest rates are low.

The survey also found that 49% prefer to fund their stocks and shares ISA with multiple lump sum deposits, while nearly a third of respondents (32%) intended to invest the maximum amount allowable within an ISA for tax year 2010/2011.

In addition, the majority of respondents indicated they are taking an active interest in their investments, with 27% reviewing their investments daily and a further 30% undertaking weekly reviews.

Stocks and shares ISAs are increasingly being viewed as an integral part of any investment portfolio with further results indicating investors feel they compliment other investments held by providing diversity (36%) and higher returns (21%).

Damian Stansfield, Managing Director at Halifax Share Dealing said; “Encouragingly, the outcome of our survey indicates investors are actively investing in their stocks & shares ISAs and contributing the maximum amount allowed within an ISA.  Importantly however, we are seeing that customers are increasingly viewing ISAs as an integral part of a balanced investment portfolio whilst at the same time taking full advantage of the tax-free status of ISAs. 

“It is vital to our ongoing success to understand our customers and their needs. Our surveys give us insight to better understand what our customers want to achieve from their investment portfolio, enabling us to provide a service that helps them to meet their investment goals.”