ISAs back says F&C

Sales of cash ISAs have shot up over the past year, F&C Asset Management has revealed.

Cash ISA purchases rose an extraordinary 110 per cent in January 2006 compared to the year before, rising from £39 million in 2005 to £82 million this year.

Cash ISA sales are a good indicator of the savings sentiment of the smaller investor, those investors who have long shunned the markets," said Jason Hollands of F&C.

"Cash ISAs are still important allowances since all capital gains made within them are free of tax, there is no additional income tax liability to pay on distributions and investors don’t even have to disclose them on their annual tax return," he added.

Filling the full £7,000 worth of your savings allowance makes a lot of sense if you are intending to save through the next year, said F&C as unlike other comparable investment there will be no charges involved.

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