ISAs grow in popularity
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.”