1st February 2016
Londoners are way behind the rest of the UK when it comes to owning an ISA, according to new research.
The analysis from digital wealth manager MoneyFarm, shows that just 39% are saving via the tax-efficient wrapper.
By comparison, 44.3% of all adults, some 22.1m, across Great Britain currently hold an ISA.
The South West has the highest proportion of ownership, with 51.7% of all individuals currently holding an ISA.
MoneyFarm said that the relatively low proportion of ISA ownership in the capital cannot be entirely explained by the higher housing costs in the capital leaving savers with less money to save, as the average Gross Disposable Household Income in London is 36% higher than the UK average.
It believes that the more likely explanation is the relative youth of savers in London compared to other parts of the country and the high time costs that are involved in opening an ISA that puts off London’s notoriously time-poor population.
Paolo Galvani, chairman and co-founder of MoneyFarm, explains: “Londoners are least likely to own an ISA and that’s partly because of the time and hassle involved in opening an ISA.
“Unfortunately, the process in setting up and running an investment account in the UK can be so laborious and frustrating that it puts off many people from even bothering.”
“We are convinced that we can get more people saving, and saving at a younger age, by using fast and user friendly app technology to run the process.”
MoneyFarm is launching its new ISA on 9 February, which will give account holders complete visibility of how their money is allocated and performing, which they will be able to access wherever and whenever they want through Iphone app or website. As a special offer, the ISA will be available fee-free for those who invest before the 5 April.