ISA Investments At Record High

• News
• Published: 02 Dec 2009 in Money and Savings

Relaxed rules affecting tax-efficient ISA investment accounts boosted sales to record numbers in October.

According to the Investment Management Association, gross ISA sales of £965m were posted for the month, a marked increase from October 2008 where net outflows reached £172.9m during the peak of the economic crisis.

Extended limits for the opening of ISA accounts has been seen as one of the reasons for the record figures, with over-50s now able to invest up to £10,200 in shares and funds, £5,100 in cash.

Net sales for October, which take account of capital withdrawn from ISAs in the month, were £301.1 million, almost double September's £162.3 million.

Rebecca O'Keeffe, head of investment at Interactive Investor, said: "The amount of money invested in our ISAs this tax year has already significantly exceeded the level of the previous 12 months. With a further boost from the higher limit for the over 50s, we expect this to be a bumper ISA season.

"Given all indications that taxes are set to rise investors should use every means possible to maximise their tax free allowance. An ISA is therefore a must for anyone with money to save and invest."