Increase in ISA deposits 'unsurprising'

An expert has said the increase in the amount of money put into ISA accounts this year is unsurprising.

The fact that an increased amount of money has been put into ISAs throughout this year is unsurprising, an expert has said.

Recent official figures from HM Revenue and Customs have revealed that more people are looking to compare savings by depositing money into accounts such as cash ISAs in 2009-10, with the total amount of funds being put away in stocks and shares accounts rising by almost a third - 29 per cent - on the previous year.

And according to George Ladds, head of investment and pension research at the Fair Investment Company, the increased ISA savings allowance of £10,200 annually - of which £5,100 can be invested into a cash account - means that such a rise is of "no real surprise".

"The increase may have also been affected by the fact that savings rates were so low," he added.

Meanwhile, Principality Building Society recently attempted to take advantage of this trend by launching a new ISA product with a one per cent rate for 12 months.

By Kate Guthrie