Beware 'dash for cash', warns Royal London

Calls for lower cash ISA allowance

Victoria McKeever
clock • 2 min read

The latest figures on ISA inflows - in combination with the newly raised annual limit, low interest rates and rising inflation - have led Royal London to warn savers against a 'dash for cash'.

The warning comes as aggregate figures for the 2014/15 and 2015/16 tax years released by HM Revenue and Customs (HMRC) show some £120bn being directed into cash ISAs over the period. In comparison, £43bn was invested into stocks and shares ISAs. Royal London said the surge in flows into cash followed the large increase in the limits for cash ISAs in July 2014 - when the annual cap was raised from £5,760 to £15,000 - and predicted this trend would only continue following the further increase in the overall ISA limit to £20,000 from last month. More detailed analysis by HMRC of the 2014...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 28 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read