Investing in stocks and shares individual savings accounts has rocketed since the allowance for the over-50s was increased a year ago.
Inflows into the ISAs have averaged more than £400 million a month since last October and half of investors say they would put more money away if ISA allowances were raised further.
The figures from the Investment Management Association show a renewed enthusiasm for investing in stocks and shares ISAs from people of all ages and lifestyles.
The ISA allowance was raised from £7,200 to £10,200 last year for the over-50s and in October, ISA net sales were the highest since their launch in 1999. Since October, sales have averaged £400 million each month, more than double the amount before the increase.
The ISA allowance rose to £10,200 in April this year for the under-50s and results from that month were the highest since 2001.
IMA research shows that one in three investors would invest more in long-term savings if incentives remained consistent and 44% said they would invest more if there was a lifetime tax-free allowance on Isas. Many people also said they would prefer greater flexibility to move money in and out of pensions savings.
Richard Saunders, chief executive of the IMA, comments: "Our research shows people are positive about incentives to save and the IMA figures back this up with ISA sales at the highest level for many years. There is a good chance that 2010 could be the best year ever for Isas."
It is unclear whether the Isa allowance will feature in the government's spending review on 20 October, and whether it will be reduced or frozen to help save the Treasury money. The allowance is currently set to increase in line with inflation each year, from next year.
Adrian Lowcock, senior investment adviser at Bestinvest, says if the government did cut the Isa tax incentives, it would be taking "more than a few steps backwards".
Thursday, October 14, 2010
Monday, July 19, 2010
Cash-rich investors boost London market
Contrary to recent reports of a glut of property forcing house prices down, the central London market paints a very different picture.
Andrew Ellinas, director of Sandfords, comments, "Transaction levels are up 25% on last year with prices standing firm as the supply of good quality homes remains limited. Buyer enquiries have also seen a 20% increase compared to last summer for property in prime pockets of Regent's Park and Marylebone, despite stock levels staying consistent. This increased competition is responsible for supporting sale prices of properties accurately marketed.
"With London now set to become the home of the new European banking watchdog, confirming the City's status as the hub of the global financial markets and attracting more financial sector workers and investment, we are likely to see increased competition for good quality homes. This will push up prices for central London property, further differentiating London from the wider UK market."
Andrew Ellinas, director of Sandfords, comments, "Transaction levels are up 25% on last year with prices standing firm as the supply of good quality homes remains limited. Buyer enquiries have also seen a 20% increase compared to last summer for property in prime pockets of Regent's Park and Marylebone, despite stock levels staying consistent. This increased competition is responsible for supporting sale prices of properties accurately marketed.
"With London now set to become the home of the new European banking watchdog, confirming the City's status as the hub of the global financial markets and attracting more financial sector workers and investment, we are likely to see increased competition for good quality homes. This will push up prices for central London property, further differentiating London from the wider UK market."
Wednesday, June 23, 2010
Nasdaq launches two sharia indexes
Nasdaq has created two sharia-compliant indexes, based on the Nasdaq 100 Index and the OMX Stockholm Benchmark Index.
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The indexes are a response to growing demand for a wider range of Islamic investments by investors and are the first in an intended family of indexes aimed those who want an Islamic investment portfolio, says Nasdaq.
The indexes are weighted by market capitalisation and track the securities in the underlying benchmark indexes, and meet sharia requirements as specified by the Accounting and Auditing Organisation for Islamic Financial Institutions adopted by Nasdaq OMX with the guidance of sharia advisor BMB Islamic UK.
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The indexes are a response to growing demand for a wider range of Islamic investments by investors and are the first in an intended family of indexes aimed those who want an Islamic investment portfolio, says Nasdaq.
The indexes are weighted by market capitalisation and track the securities in the underlying benchmark indexes, and meet sharia requirements as specified by the Accounting and Auditing Organisation for Islamic Financial Institutions adopted by Nasdaq OMX with the guidance of sharia advisor BMB Islamic UK.
Thursday, June 3, 2010
Profits at Low and Bonar better than hoped
Things are improving faster than expected at Low & Bonar, the performance materials groups focused on technical textiles, with like for like sales in the second quarter ahead of last year in all segments.
The company said that the transport, leisure and carpet manufacturing markets had put in especially strong performances.
"The improvement in sales referred to in the Interim Management Statement on 8 April has been maintained consistently throughout the second quarter," the company said. The company's second quarter runs through to end-May.
As a result, at current exchange rates, the group anticipates that the full year trading performance will be ahead of its previous expectations.
The company said that the transport, leisure and carpet manufacturing markets had put in especially strong performances.
"The improvement in sales referred to in the Interim Management Statement on 8 April has been maintained consistently throughout the second quarter," the company said. The company's second quarter runs through to end-May.
As a result, at current exchange rates, the group anticipates that the full year trading performance will be ahead of its previous expectations.
Tuesday, May 25, 2010
Credit Card Rules Cut Bank Fees by $5 Billion
New credit card and overdraft restrictions will save U.S. consumers from being charged at least $5 billion in fees this year alone at the largest U.S. retail banks and credit card companies, a USA TODAY analysis reveals.
The analysis -- based on institutions' own estimates -- comes during a year when new rules are kicking in to address unfair credit card rate increases and steep bank overdraft fees. It highlights the sizable dent these rules will have on an industry blamed for pushing consumers deeper into distress during the recession.
In recent years, banks made it easier for consumers to overdraw their bank accounts and raised credit card fees and rates. As consumer outcry swelled in the recession, Congress passed a credit card law and the Federal Reserve issued a regulation to crack down on banks' aggressive overdraft policies on debit cards.
Lawmakers hope the restrictions will mean much-needed savings for consumers, boosting spending and the economy. Indeed, new data show the measures are their "own little stimulus for the economy, keeping billions in the pockets of consumers rather than in profits gained from deceptive practices," says Rep. Carolyn Maloney, D-N.Y., co-author of card reform signed into law last year.
USA TODAY's analysis relies on institutions' projections of what they will give up under the new rules, gathering data from the 10 largest retail depository institutions and the 10 largest holders of credit card receivables, as tracked by SNL Financial.
Of the 10 institutions with the largest amount of credit card receivables, seven gave estimates about the credit card law's impact. In all, the issuers -- Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, U.S. Bancorp, HSBC North America and Barclays Group US -- will forgo at least $2.5 billion to $3.1 billion in fees just in 2010. Also, seven of the top 10 depositary institutions expect to take a combined $2.4 to $2.6 billion hit under the new overdraft rules and banks' voluntary policy changes.
R.K. Hammer Investment Bankers predicts that institutions will give up at least $9.9 billion in revenue a year due to the credit card law. Moebs Services estimates that the industry's overdraft revenue will shrink by $1.9 billion, to $35.2 billion this year. While some institutions are moving away from overdraft coverage, others are boosting fee income with new programs, Moebs says.
Scott Talbott, a senior vice president at the Financial Services Roundtable, warns that the total cost of the credit card and overdraft regulations will be even higher than bank estimates, which "don't take into account the loss of services and credit that would be available."
The analysis -- based on institutions' own estimates -- comes during a year when new rules are kicking in to address unfair credit card rate increases and steep bank overdraft fees. It highlights the sizable dent these rules will have on an industry blamed for pushing consumers deeper into distress during the recession.
In recent years, banks made it easier for consumers to overdraw their bank accounts and raised credit card fees and rates. As consumer outcry swelled in the recession, Congress passed a credit card law and the Federal Reserve issued a regulation to crack down on banks' aggressive overdraft policies on debit cards.
Lawmakers hope the restrictions will mean much-needed savings for consumers, boosting spending and the economy. Indeed, new data show the measures are their "own little stimulus for the economy, keeping billions in the pockets of consumers rather than in profits gained from deceptive practices," says Rep. Carolyn Maloney, D-N.Y., co-author of card reform signed into law last year.
USA TODAY's analysis relies on institutions' projections of what they will give up under the new rules, gathering data from the 10 largest retail depository institutions and the 10 largest holders of credit card receivables, as tracked by SNL Financial.
Of the 10 institutions with the largest amount of credit card receivables, seven gave estimates about the credit card law's impact. In all, the issuers -- Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, U.S. Bancorp, HSBC North America and Barclays Group US -- will forgo at least $2.5 billion to $3.1 billion in fees just in 2010. Also, seven of the top 10 depositary institutions expect to take a combined $2.4 to $2.6 billion hit under the new overdraft rules and banks' voluntary policy changes.
R.K. Hammer Investment Bankers predicts that institutions will give up at least $9.9 billion in revenue a year due to the credit card law. Moebs Services estimates that the industry's overdraft revenue will shrink by $1.9 billion, to $35.2 billion this year. While some institutions are moving away from overdraft coverage, others are boosting fee income with new programs, Moebs says.
Scott Talbott, a senior vice president at the Financial Services Roundtable, warns that the total cost of the credit card and overdraft regulations will be even higher than bank estimates, which "don't take into account the loss of services and credit that would be available."
Monday, April 26, 2010
HSBC launches fix-track split mortgage
The loan is aimed at borrowers who are unsure whether to keep the flexibility of a tracker or benefit from the security of a fixed-rate.
From April 26, customers will be able to choose to fix 25, 50 or 75 per cent of their loan, with the remaining percentage on a lifetime tracker, at the same rate as the fixed proportion. The interest rate will depend on the proportion of the loan that is fixed and the loan-to-value.
.There is a £999 booking fee and customers can borrow up to £500,000.
HSBC head of mortgages Martjin van der Heijden says: “It is impossible to predict exactly when interest rates will start to rise and borrowers are facing the potentially costly dilemma of whether they should fix or take advantage of the historically low rates with a variable mortgage. Our consumer research shows many households on trackers or standard variable rates feel they should lock in some of the benefit of the low base rate but are not sure how or when.”
From April 26, customers will be able to choose to fix 25, 50 or 75 per cent of their loan, with the remaining percentage on a lifetime tracker, at the same rate as the fixed proportion. The interest rate will depend on the proportion of the loan that is fixed and the loan-to-value.
.There is a £999 booking fee and customers can borrow up to £500,000.
HSBC head of mortgages Martjin van der Heijden says: “It is impossible to predict exactly when interest rates will start to rise and borrowers are facing the potentially costly dilemma of whether they should fix or take advantage of the historically low rates with a variable mortgage. Our consumer research shows many households on trackers or standard variable rates feel they should lock in some of the benefit of the low base rate but are not sure how or when.”
Tuesday, March 30, 2010
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