Kevin Brown

The value of new stocks and shares ISA savings jumped 16% in Q2 compared with the previous quarter, despite a 16% drop in the number of new policies being opened.

Only the East Midlands saw a bigger increase (17%) in contributions over the same period.

The average for the UK was much lower (3%) with many regions registering a drop in investment contributions, such as the West Midlands (-8%), South West (-8%), London (-6%) and the North East (-1%).

As for investment into junior stocks and shares ISAs (JISAs), the number of new policies opened in Scotland fell by 7% between Q1 and Q2 2023.

There was also a marginal drop (-1%) in the value of new JISA policy contributions by Scottish investors, which was equal to the UK average over the same period.

Kevin Brown, savings specialist at Scottish Friendly, commented: “The unrelenting pressure on UK household budgets has been restricting people’s ability to save and dampening demand for new investments.

“We have seen the value of new investment ISA contributions fall for seven consecutive quarters, but investment levels among Scots has now bounced back up.

“It is too early to say whether this is likely to continue, but it suggests that Scottish households that can still afford to save are looking to take advantage of the growth potential of the stock market.

“Saving rates are improving but the rate of interest on many accounts falls way short of the current rate of inflation.

“Investing can offer protection from inflation as it provides the possibility of growing your money faster than the speed at which prices are rising.”