ISA decisions appear to have been forced on savers recently as according to analysis of HMRC figures from Hargreaves Lansdown (HL), coronavirus has sparked a “last-minute” ISA dash. In examining the details, it was found that cash ISAs remain popular among savers, even in a low interest rate environment.
Sarah Coles, a personal finance analyst at HL, broke down these figures.
She said: “The coronavirus crash sparked a last-minute dash into ISAs in the 2019/20 tax year. Both cash and stocks and shares ISAs took more money than a year earlier, while the number of Lifetime ISAs more than doubled.
“Until the last few weeks of the tax year, stock markets had moved around a little but looked set to end the tax year roughly where they started. The pandemic changed all of that, sparking a massive sell-off that knocked a third off the value of the FTSE 100. Suddenly investors saw huge value in the market, and rushed to buy before the end of the tax year.