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Press comment: Isa savers punish low rates on cash as stocks and shares accounts grow by 250,000


If you are covering new statistics on Isas published today, please see the following commentary from Quilter tax and financial planning expert Rachael Griffin:


Rachael Griffin“Isa subscriptions were down overall in the last tax year, which on the face of it seems disappointing. But the good news is that savers are punishing the low rates on cash offered by banks and building societies, and taking advantage of the opportunity to invest their Isa savings in the stock market. The number of people putting money into stocks and shares Isas increased by nearly a quarter of a million last year. Although cash Isas are still dominant, their share of all Isa subscriptions fell to 72% as a result. 

“And there is still a big divide between certain groups, with men still more likely to save into stocks and shares and lower income households much more likely to favour a cash Isa.

“Although subscription numbers declined slightly, the amount saved actually increased on aggregate because, on average, the typical stocks and shares Isa investor is putting more money into their account. The average amount paid into an Isa increased by 15% to nearly £6,500, although this still means the average Isa holder has around £13,500 of unused Isa allowance each year.

“Over time, compound returns can deliver rewards for investors that commit to saving through a stocks and shares Isa, and this is growing more appealing as the prolonged low interest rate environment means that returns on cash continue to be meagre.

“The Isa, now 20 years old, has been enormously successful. By exempting individuals from tax on interest, dividends and capital gains, it has created a fantastic incentive to save and invest, and individuals continue to take advantage of that in order to invest in their own future and set money aside for their family.

“For anyone considering investing in an Isa, there are lots of options available and it is well worth considering speaking to a financial adviser. They will assess your own personal financial needs and help to identify an investment plan that sets aside the right amount and allocates it to an investment that is suited to you.”

For more information contact

Michael Glenister020 7778 963807469

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.4 billion in investments (as at 30 June 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.