Figures from the Building Societies Association show that not all areas of the Isa market are performing badly.
In contrast to last week’s Investment Management Association figures which show net outflow of funds from Isas for the first time since 1999, BSA figures show strong demand for cash-based deposit accounts. The BSA September figures show that building societies had net inflows in cash-based deposit accounts of 1.2bn in September compared with 121m in September 2003.
Director general Adrian Coles says the impact of taxation changes and the continued slow performance of the stockmarket are taking their toll on stocks and share Isas. For the moment, Coles thinks onsumers will continue to put their money into cash accounts.
Coles says: “It is important that the distinction between cash Isas and stocks and share-based Isas is made. It is not the case that there were net outflows from all Isas. We have seen dep-osits in cash-based society accounts go through the roof.”