Britons over 50 are turning to share dealing in huge numbers – perhaps as savers have finally tired of waiting for the base rate to rise.
Figures from Saga Share Dealing show a huge yearly increase (80%) in the number of customers opening nominee share dealing accounts. There has also been a general, 43% year-on-year rise in the number of new accounts being opened, as well as a 30% increase in trading volumes.
Experts say stocks and shares have become more and more popular in recent years among people of all ages, because low interest rates mean returns from savings accounts have failed to keep up with the rising cost of living.
Andrew Strong, CEO Acromas Financial Services, commented: "Share Dealing probably seems a more attractive prospect at the moment because even the Bank of England says base rates will not rise quickly, or by much. So holding out for a rise in interest rates, in order to improve income, may not be the wisest decision.
“Saga has produced a free guide to savings and investing, which can help those who are considering their options when it comes to how best to manage their money.
“Increasing interest in share dealing suggests a growing confidence, not only in the markets, but also in the ability of investors to make their own investment decisions.”
A recent poll by Saga, carried out by Populus, showed that many of Britain’s over 50s think both the FTSE 100 Index and Bank of England Base Rate will rise by the end of 2014.
Notes to editors:
Saga Share Dealing
A Saga Share Direct account, provided by Barclays Stockbrokers, offers low cost share dealing online or over the telephone, with no annual fees.
It also offers:
• Competitive dealing rates (trade from as little as £9.75 per online trade when you conduct 10 or more trades per quarter or £11.95 if you trade less frequently)
• No annual account management fees
• No fees for inactivity
• Access to a Free Online Research Centre to help you choose your own investments
• UK shares, gilts, bonds and funds
• Access to more than 2,600 funds with no initial charge.