Rising ISAs

What Investment, Feb, 2007

Individual Savings Account (ISA) season will be particularly buoyant in 2007, according to Fidelity FundsNetwork, which is forecasting a 30 per cent rise in its own ISA fund sales. A Government commitment to make ISAs permanent made at the end of 2006 will boost interest, according to the online investment supermarket. Richard Wastcoat, UK managing director of Fidelity International, said: "The build-up to the 2007 ISA season is indicating that fund sales via this flexible wrapper are set to outstrip those of 2006. That momentum was given a further boost by the Chancellor when he confirmed the Government's continued commitment to ISAs as well as confirming new switching rules enabling those in previous years' cash ISAs to consider moving into stocks and shares in the near future."

In other ISA news, National Savings & Investments (NS&I) has raised the interest rate on its Direct ISA to 5.8 per cent from 5.55 per cent, following January's 0.25 per cent rise in the Bank of England base rate. The new rate has already come into force and is guaranteed to be 0.55 per cent above base rate until at least 5 April 2008. Being backed by HM Treasury, the NS&I Direct ISA comes with a 100 per cent capital guarantee. It allows investment of up to 3,000 [pounds sterling] per year, with balance check and withdrawal facilities available online 24 hours a day or over the phone between 7am and midnight, seven days a week.

The NS&I Direct ISA requires a minimum initial deposit of 1,000 [pounds sterling] with further deposits of 250 [pounds sterling] (or 100 [pounds sterling] by standing order). Visit www.nsandi.com or call 0845 964 5000 for more details.

See our ISA supplement in this month's issue for more information on ISAs.