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ISAs grow in popularity

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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.”