The FTSE 100 index is currently at its lowest since Christmas amid rumours of an interest rates hike in the United States, which could mean now is a good time to invest in a shares-linked Individual Savings Account (ISA).
The tax free investments linked to stock market movements are best taken up when share values are relatively low and expected to rise, as returns are based on market movements.
The Daily Mirror reports that anyone who has invested £100 a month since 2000 would have benefited from the shares peak and transformed their £7,500 of savings into a £12,500 lump sum by 2006.
Tony Vine-Lott, the director general of the PEPs and ISAs Managers' Association (PIMA), said: "There has been a tremendous increase in share ISAs, both direct investments through equities and also through funds in the last six months, more than there has been in the last three years."
He added that fluctuations of the market put people off investments at times but encouraged increased saving in shares ISAs when profits were being made.
Savvy savers could use these consumer 'knee-jerks' to their advantage by pre-empting movements, Mr Vine-Lott concluded.To read more about savings and investments, click here.
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