Finance companies were hoping for a big increase on the number of individual savings accounts. However, due to the recent increase in interest rates this looks like it might not happen. New figures released show that sales fell 71percent in January from the previous month and were down 62percent compared with January 2005.
The rise in interest rates mean that investors would rather concentrate on reducing credit card debt and mortgages than saving.
Our view
More experienced investors will know that set-backs often present buying opportunities. If you are a more cautious investor you may wish to consider equity income funds or corporate bonds or contact us for advice.