HSBC research has shown that regular UK savers plan to utilise the government’s new ISA rules from 1st July, but those choosing cash ISAs still outweigh stocks and shares.
One in five (21 per cent) of those surveyed say they will save more in a cash ISA, whilst just 7 per cent of savers say they will save more in a stocks and shares ISA. 14 per cent say they will save more across both cash and stocks and shares.
The research, conducted among 2,000 UK adults, also reveals that just under half (46 per cent) of those who have an ISA do not use any of their stocks and shares allowance. However, those who do say stocks and shares ISA savings make up a third (33 per cent) of their entire savings portfolio.
Those who said they saved regularly say their total ISA savings currently stand at 38 per cent of their overall savings portfolio. The average ISA saver has £5,361 in a cash ISA and £2,762 in a stocks and shares ISA.
Oliver Cook, Head of Savings at HSBC said:
“The new ISA rules give savers more freedom and choice when it comes to managing their savings and maximising their returns. Whilst some will be able to use their new allowance to the full, it’s also a good time to start a regular savings habit. Putting away even a small amount each month means you can build up a savings pot that can benefit from tax-free interest in years to come.”
The HSBC Loyalty Cash ISA gives customers HSBC's best available on sale ISA rate (currently between 1.4% and 1.6% AER variable depending on the type of current account held). Customers can transfer in from any other ISA provider. By topping up by as little as one pound from 1st July, customers will secure their loyalty rate for a further twelve months and earn interest tax free on their entire cash ISA balance. The HSBC Loyalty ISA is exclusive to HSBC current account customers.
HSBC also offers a range of direct investment stocks and shares ISA options.