Scots ramp up investment levels despite opening fewer ISA policies
Savers in Scotland increased contributions into new investment ISA policies by 16% in Q2 2023
Only the East Midlands saw a bigger jump in new investment contributions in the three months to June
New policy openings fell sharply (-16%) in Scotland and across the rest of the UK
New data from financial mutual Scottish Friendly reveals Scots ramped up their investment contributions in the three months to June despite opening fewer ISA policies. The value of new stocks and shares ISA savings jumped 16% in Q2 compared with the previous quarter, despite a 16% drop in the number of new policies being opened. Only the East Midlands saw a bigger increase (17%) in contributions over the same period. The average for the UK was much lower (3%) with many regions registering a drop in investment contributions, such as the West Midlands (-8%), South West (-8%), London (-6%) and the North East (-1%).
As for investment into junior stocks and shares ISAs (JISAs), the number of new policies opened in Scotland fell by 7% between Q1 and Q2 2023. There was also a marginal drop (-1%) in the value of new JISA policy contributions by Scottish investors, which was equal to the UK average over the same period.
Kevin Brown, savings specialist at Scottish Friendly, comments:
“The unrelenting pressure on household budgets has been restricting UK household’s ability to save and dampening demand for new investments. We have seen the value of new investment ISA contributions fall for seven consecutive quarters, but investment levels among Scots has now bounced back up."
"It is too early to say whether this is likely to continue, but it suggests that Scottish households that can still afford to save are looking to take advantage of the growth potential of the stock market. Saving rates are improving but the rate of interest on many accounts falls way short of the current rate of inflation. Investing can offer protection from inflation as it provides the possibility of growing your money faster than the speed at which prices are rising."
Contacts:
Heather Mcroberts, PR & Communications, Scottish Friendly
07783151560
Editors notes:
Remember that the value of investments can go down as well as up and you could get back less than you paid in. Past performance is no guide to future results. Tax treatment depends on individual circumstances which can change in the future.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
In recent years Scottish Friendly has significantly restructured its business. The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.