31% plan to increase Isa subscriptions

NEARLY a third (31%) of Isa savers plan to increase their subscriptions this year, despite global market volatility, a survey has found.

As the end of the tax year approaches on April 5, just one in 50 (2%) Isa holders plan to scale back their contributions.

The research was conducted for investment platform Freetrade, which said US technology stocks are among the most popular with its Isa holders in 2022, and comparison review website InvestingReviews.co.uk.

Some 1,000 Isa holders were surveyed, including 700 with stocks and shares Isas.

The findings were released at a time when inflation is expected to hit 8% in the coming months, eroding the value of people’s savings held in cash further.

According to analysis from AJ Bell last week, even if someone put their money in a top paying easy access account, someone with £20,000 of savings could potentially end up losing around £1,400 a year in real terms if inflation reaches 8%. Investing in stocks and shares can potentially lead to bigger returns over the longer term for those riding out the peaks and troughs of the markets, however capital is at risk and people may end up getting back less money than they put in.