Britons take on more risk as cash Isa numbers “crash”

HMRCBritons’ appetite for financial risk jumped in the last year as savings in stocks and shares Isas reached a record high, according to official figures.

Figures from HMRC, the UK’s tax collector, showed money invested in stocks and shares Isas overtook cash Isas, which crashed in the year 2016-2017.

The amount of money held in adult stocks and shares Isas went up 6% to £315 billion (€342.6 billion) compared to £270 billion in cash Isas.

The amount subscribed to cash Isas fell by almost £20 billion while the amount of money placed in stocks and shares Isas increased by £1.2 billion.

Hargreaves Lansdown, an independent financial adviser, attributed the drop in cash Isa saving to the introduction of the personal savings allowance last tax year and interest rate cuts.

Danny Cox, chartered financial planner at Hargreaves Lansdown, said: “Low interest rates and the new personal savings allowance have precipitated a collapse in cash Isa saving.

“While understandable, this may prove to be short-sighted as neither low interest rates nor the personal saving allowance are necessarily a permanent fixture of the financial landscape, though it’s fair to say both do look set to remain in place for the foreseeable future.”

©2017 funds europe