Record ISA savings announced

HM Revenue and Customs (HMRC) has found record levels of cash were placed in the government's flagship ISA scheme in the first three quarters of the 2007/2008 tax year.

Research finds there were more investors putting money in 'mini' stocks and shares ISAs than ever before, with 1.4 million accounts subscribed to.

This represents an annual increase of 7.6 per cent on the same point of the previous tax year.

More Cash ISAs were also opened than ever before, with over nine million investors choosing the ISA for their cash savings.

Furthermore, the number of 'maxi' ISAs subscribed to remained broadly consistent with last year, (showing only a slight 0.7 per cent decrease), with nearly 1.3 million accounts open.

The volumes of cash in the scheme were also on the increase.

The first three quarters of the last financial year saw monies invested in 'mini' stocks and shares ISAs rise by over 15 per cent year on year.

As a result, the amount invested in the scheme broke the £2 billion threshold for the first time ever, with some £2.06 billion saved.

Monies saved in Cash ISAs saw an increase of 5.3 per cent, to nearly £18.1 billion.

Subscriptions made to maxi ISAs were at their highest level for five years, with £5.6 billion invested to date.

"In the first three quarters of the 2007-2008 tax year, roughly 11 million people invested £25.7 billion in ISAs despite considerable uncertainty in financial markets and some rather mixed commentary in media," said Tax Incentivised Savings Association (TISA) director general, Tony Vine-Lott.

"These numbers are the most powerful evidence possible to demonstrate consumers' affinity for ISAs and their viability into the future - which the government has made clear is without question.

"Looking into the future, we eagerly anticipate early feedback from consumers on how the simplified ISA regime is meeting their savings needs."