The Q2 investor barometer conducted by Assetz Capital has revealed that although 52% of investors had put money into cash Isas in Q1, only 37% still continued to do so at the end of this year’s ‘Isa season’.
Data from Q2 found that 61% of investors were using stocks and shares Isas, 60% had an Innovative Finance Isa (IFIsa), while a small minority were investing in Lifetime or Help to Buy Isas (4% and 3% respectively).
In March 2018, the average interest rate offered by a cash Isa was 0.70%, according to figures from Defaqto.
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“Given our investors are familiar with P2P lending, we’d expect to see more opt for an Innovative Finance Isa than the general public, but it is still notable to see this significant drop in cash Isa users,” said Stuart Law, CEO at Assetz Capital (pictured above).
“Our IFIsa has grown steadily in popularity since launch.
“As of the end of May, almost £50m has been invested in our Isas – over £12.5m of which has come from transfers.
“Around 75% of all investment in our Isa is new money on the platform and the average size of an Isa account is approaching £15,000.
“We believe much of this is driven by a movement away from cash Isas and we expect this to continue as consumers look to make their money work harder for them.”
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