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Regular savings bouncing back

Regular savings are making a comeback, with sales reaching close to their pre-Isa levels after a period of decline, according to the latest figures from Autif.

Investment through regular savings plans increased 12 per cent to £501m in the second quarter from £446m in the first quarter of this year. This is the highest level since the first quarter of 1999, before Isas were introduced.

Autif claims the reason why regular savings plummeted by £200m, to £314m under Isas in the second quarter of 1999 from £515m in the first quarter under Peps, was because Pep savers were not allowed to automatically switch their regular investment to an Isa on their introduction in April 1999.

Isa sales reached £796m in June making the total for the year £4.25bn the trade association&#39s monthly report shows.

This is down from May when Isa sales reached £914m, but higher than a year ago when £589m of Isas were sold. IFAs accounted for 42 per cent of this business.

Other than the recovery of regular savings, the results from the month were average says Autif.

Autif public relations manager Clare Arber says: “It is only now that we are starting to see a pick-up of regular savings. It is a shame it dropped so dramatically. Now it looks like it may be improving.”

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