Increased Limit on Isas Reawakened Investors’ Interest

The increase in the annual investment limit resulted in a growing number of Isa – individual savings accounts - purchases. As such, gross purchases of Isas in October, November, and December 2009 rose to £1 billion and £900 million respectively, up from £600 million - £700 million.
Let us remind that the limit on Isas constituted only £7,000 for the past 10 years. However, according to the figures released by the Investment Management Association the increase of the limit to £7,200 has become a significant boost for the popularity of this product.
In the opinion of Stephen Anness, a fund manager at one of largest UK retail fund groups -  Invesco Perpetual – the growing popularity of Isas is due not only to the increased annual investment limit but also to historically low rates on cash deposits.