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Cash ISAs the new long term investment as investors turn their backs on property

15 September 2009 / by Rebecca Sargent

As the property market remains unstable, investors are turning their backs on the property ladder in favour of other investment options.

In fact, as the UK continues to navigate through the recession, latest research from the Scottish Widows Savings and Investment Report has revealed that investors are turning to the relative safety of cash as 42 per cent of investors say they have chosen a cash ISA as a long term investment this year.

In comparison, just eight per cent of those investing for the long term said that they chose property as their investment choice.

Commenting, Anne Young, savings expert at Scottish Widows said: "Nobody can predict what will happen in the property market. However, savers should be cautious about relying on the returns from their property as a long term investment."

Adding: "It is good news that more people are choosing ISAs as their investment vehicle this year."

Despite the fact that few long term investors have chosen property as their vehicle of choice, the study also found that 48 per cent of investors still have faith in property as a good investment.

Ms Young adds: "There is a real need for a shift in the strong sentiment in favour of property and for people to be educated to put money aside for their future, especially if they don't currently understand how to do it or think they can't afford it."

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ProviderAccountInterest Rate (AER)TermApply
up to
4.20%		3 YearsApply Now >
Earn 4.20% Gross/AER when you transfer in or 3.80% Gross/AER standard rate. £1,000 minimum deposit. Transfers allowed from other cash ISAs.
3.55%3 YearsApply Now >
Cash ISA with a fixed rate of 3.55% AER for 3 years. £500 minimum balance. No withdrawals or additional deposits.
3.50%2 YearsApply Now >
Cash ISA with a fixed rate of 3.20% AER for 2 years. £500 minimum balance. No withdrawals or additional deposits.
up to
3.90%		2 YearsApply Now >
Earn 3.90% Gross/AER when you transfer in or 3.50% Gross/AER standard rate. £1,000 minimum deposit. Transfers allowed.
up to
3.90%		2 YearsApply Now >
Earn 3.90% Gross/AER when you transfer in or 3.50 standard rate. £1,000 minimum deposit. Transfers allowed.
up to
3.35%		1 YearApply Now >
Earn 3.35% Gross/AER when you transfer in, or 2.60% Gross/AER standard rate. Minimum deposit £1,000. Transfer in from other cash ISAs.
up to
3.35%		1 YearApply Now >
Earn 3.35% when you transfer in, or 2.60% Gross/AER standard rate. Minimum deposit £1,000. Transfer in from other Cash ISAs.
2.50%Instant AccessApply Now >
Instant access cash ISA open to new and existing customers. Transfers accepted. £10 minimum deposit.
2.00%Instant AccessApply Now >
Earn 2.50% on balances of £30,000 or more, 2.25% on £10,000-£29,999, or 2.00% on balances up to £9,999 (AER) Open to Natwest current account holders only.
0.55%Instant AccessApply Now >
Earn from 0.55% (balances up to £8,999); 0.75% (£9,000-£14,999); 0.95% (£15,000-£21,999); 1.75% (£22,000-£26,999); 1.90% (£27,000-£49,999); 2.00% (£50,000 or more) ISA transfers are eligible for additional bonus interest payments. Open to RBS current account holders only.
0.50%Instant AccessApply Now >
Minimum deposit just £1. Rates from 0.50% - 2.00% AER. Open to Natwest current account holders only.
* Income payments are dependent upon the FTSE 100 Index.