Principality BS new Cash ISA 4.50%
According to a recent Principality Building Society (principality.co.uk) survey, carried out by Cardiff-based Research & Marketing, conducted among 600 people living in Cardiff, Swansea, Newport and Wrexham more than half of those asked (52.9 per cent) believe that now is a good time to save: an increase of 10.1 per cent on the last quarterly survey.
Just over one in ten people in Wales are aware of the maximum amount they will be allowed to invest in a new Cash ISA from the beginning of April, according to the latest Principality Building Society Quarterly Saving and Spending Survey.
While almost two-thirds of those questioned in the survey (63.8 per cent) hold a Cash ISA from previous years, just less than a quarter of those questioned (24.6 per cent) said they were intending to open a new one for the forthcoming financial year, which starts on April 6.
Of those who are intending to take out a new Cash ISA for 2010-11, almost two-thirds (65.1 per cent) are planning to invest a lump sum rather than save regularly (30.2 per cent)), with more investors (44.1 per cent) favouring a fixed rate product offering a higher return of interest than those preferring a low rate with instant access to their money (35.4 per cent).
A total of 50.9 per cent believe that saving is now more important than ever to provide a financial cushion, although more than three-quarters of respondents who think now is a bad time to save do so because interest rates are low. Only 8.5 per cent of those asked said they have no money to save.
The Principality research revealed that just 11.6 per cent of those questioned are aware that from April 6 the new maximum amount that can be invested in a Cash ISA will increase for everyone aged 16 and over to £5,100 – an increase of £1,500 on last year’s maximum.
Respondents were most likely to think they could invest £5,000 (14.4 per cent), followed by 12.3% who thought the maximum investment is £3,000. People in Newport and Wrexham were most likely to think that £3,000 could be invested (14.8 per cent and 15.9 per cent respectively).
Principality Building Society, which is celebrating its 150th anniversary this year, has a range of ISA’s, including a five-year fixed rate Cash ISA paying a market-leading 4.50% AER# tax free, allowing transfers in of previous tax years’ ISA subscriptions.
