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Individual Savings Accounts in the UK:outlook for the market 2018

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Big Market Research presents this report which provides market analysis, information and insights into the UK ISA industry,provides a breakdown of the different forms of ISAs in the UK and it analyses drivers and the outlook for the market. Find The Full Report On : – PowerPoint PPT presentation

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Title: Individual Savings Accounts in the UK:outlook for the market 2018


1
Individual Savings Accounts in the UK - Key
Trends and Opportunities to 2018
2
Summary
This report provides market analysis,
information and insights into the UK ISA
industry It provides a breakdown of the
different forms of ISAs in the UK It analyses
drivers and the outlook for the market It
provides information on the main banks in the UK
market It covers news and regulatory
developments Find The Full Report On
http//www.bigmarketresearch.com/individual-saving
s-accounts-in-the-uk-key-trends-and-opportunities-
to-2018-market
3
Synopsis
  • Interest rates are at their lowest levels since
    individual savings accounts (ISAs) began, which
    significantly reduces consumers commitment to
    saving. As a result, consumers those who can
    afford to save are starting to opt either for
    stocks and shares accounts or deciding to pay off
    long-standing debts with higher interest rates.
  • The average rate offered on cash ISAs fell from
    2.55 at the start of 2012 to 1.74 in February
    2013, and to just 1.64 at the start of 2014. The
    average rates for savings accounts fell from
    5.09 in 2008 and 1.48 in 2014, which highlights
    the impact of the recession and the availability
    of cheap funds for the banks.
  • Eight out of every 10 ISAs opened in FY20132014
    were still cash ISAs however, as savers remained
    risk-averse, despite banks offering the worst
    interest rates on record. Stocks and shares ISAs
    are starting to recover however, following a
    substantial decline in the number for accounts
    from FY20102011 to FY20112012.

4
Synopsis
  • The amount subscribed to stocks and shares ISAs
    has increased considerably since FY2009 from
    GBP12.5 million to GBP18.4 million - which
    suggests that a smaller percentage of wealthier
    people, who can afford the increased risk, are
    filling these ISAs to the limit.
  • The BoEs central bank rate has remained at 0.5
    since 2009, providing banks with an unparalleled
    level of cheap funds, meaning that the banks have
    significantly less need to compete for funds from
    consumers. The introduction of the governments
    Funding for Lending scheme providing up to
    GBP80.0 billion to major banks to subsidize
    mortgage lending has further reduced the banks
    need for funds, which has had a considerable
    impact on the savings market.
  • There have been an estimated 2,560 savings
    products cut since the introduction of the
    Funding for Lending scheme in August 2012, as of
    November 2014.Real wages endured negative growth
    for most of the 20082014 period, despite
    positive growth for the last three months of
    2014.

5
Synopsis
  • This, combined with soaring house prices and
    energy bills, means that consumers were squeezed
    during the recession, and are subsequently less
    able to set aside amounts every month for savings
    accounts. House prices in the UK increased by
    18.6 between 2009 and 2014 rising by 9.9 in
    2014 alone, according to Nationwides house price
    index.
  • Research by consumer body Which found that the
    price of gas and electricity grew by 127 from
    20032004 to 20132014, and that the average
    household is paying GBP410.0 more per year for
    energy, despite using less.Several changes have
    been made to ISA regulation to try to stimulate
    the industry in the face of low interest rates,
    since the Funding for Lending scheme.
  • New ISAs (NISAs) were introduced in the April
    2014 budget, which increased the upper annual
    limit for an individual to GBP15,000.0. Tax
    advantages were also introduced in Chancellor
    George Osbornes 2014 Autumn Statement, allowing
    ISAs to pass tax-free to a spouse after death.
    Osborne also announced that there will no longer
    be capital gains tax for profits of under
    GBP11,000.0 on stocks and shares ISAs.

6
Key Market
Reasons To Buy Gain an understanding of the UK
ISA industry Key highlights Consumer credit
growth has shown consistent signs of growth in
2014, for the first time since before the
financial crisis. This is in a large part due to
consumer confidence also recording a positive
number for the first time since the credit
crunch, low interest rates and a steadily growing
GDP, as nearly every category of lending has
grown up to July 2014.Demand for and availability
of credit also grew in both the second and third
quarters of 2014, which has been a key
factor. To Get More Details Enquire _at_
http//www.bigmarketresearch.com/report-enquiry/17
2972
7
Content
Table Of Contents Santander UK Plc, Royal Bank of
Scotland Group Plc, HSBC Bank Plc, Barclays Plc,
Lloyds Banking Group Plc, HSBC, Nationwide List
Of Tables 1 Executive Summary 2 Introduction 2.1
What is this Report About? 2.2 Definitions 2.3
Methodology 3 Market Analysis 3.1 Market
Size 3.1.1 Cash ISAs 3.1.2 Cash ISA
Breakdown 3.1.3 Stocks and shares ISAs 3.1.4
Sight and time deposits
8
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