Savers are taking to ISAs in increasing numbers, a new survey has revealed.
According to the Halifax’s latest ISA Savings Report, the average Briton has £7,782 tucked away in tax-free ISA accounts.
That represents almost a third of typical annual earnings (£26,075).
Were savers to have kept their ISA accounts fully topped up since their introduction in 1999, then they would have accumulated pots worth £34,200 or, if the present year’s allowance were taken into account, £39,300.
Those aged over 75, on average, have the largest ISA savings at £13,912.
Savers aged between 16 and 24 have average ISA accounts worth £1,848; savers aged between 25 and 34 have average ISA balances of £2,388.
Nitesh Patel, an economist at Halifax, said: “It’s great to see UK savers are taking advantage of the tax-free benefit of an ISA by investing just under a third of their income.
“Frustratingly though, while ISAs have been available for over a decade, savers are still not making the most of their savings by using their full annual ISA allowance.
“It’s also encouraging to see so many elderly savers switched on to ISAs – this surely underscores that it is not just the younger generation who are financially savvy.”
This material is for informational purposes only and should not be relied upon as professional advice.
