According to independent market analyst Datamonitor, deposits accounted for 47 percent of the total UK retail savings and investments market at year end 2006.
In a new report, Datamonitor anticipates this sector will continue to grow over the next five years as providers become more adept at attracting new business opportunities by responding to and focusing more on customer needs. Meanwhile, the ISA market has been going from strength to strength, but Datamonitor expects a market correction in the near future could affect the development of ISAs, particularly stocks and shares accounts.
“Customer needs are being taken into consideration by banks and building societies, as more accounts are instant access or no notice and more are available to be operated online or over the telephone,” says Katie Langridge, Financial Services Analyst at Datamonitor and author of the report.
The market for ISAs has grown significantly over the past five years and in 2006, new ISA sales were worth GBP33.3 billion, with a record 13,788 ISAs being taken out during the year. Mini Cash ISAs, which are the most popular, have grown by 6.5 percent since 2002, in terms of annual sales value.