Consumers 'shun ISAs' over cost worries

'Savers are clearly not convinced'

Carmen Reichman
clock • 1 min read

Consumers are increasingly turning their backs on ISAs as they are concerned about the returns the products will achieve, an advice firm has claimed.

Online adviser MoneyFarm said the number of new ISA accounts opened has been on a gradual decline in the past years, particularly impacted by low-interest rates and their 'high' cost. Citing HM Revenue & Customs figures, the firm said 14.6m accounts (both cash and shares) were opened in 2012/13, down to 13.5m in the following year and 13m in 2014/15. The reason for the decline was consumers are worried about the returns the cash products would be able to achieve in a the prevailing low-interest environment and the high cost of opening a shares ISA, which threatened to erode returns, M...

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