ISAs used by more than a third of households, poll finds

Wednesday, 17 February 2010 11:42

By myfinances.co.uk

Over a third (37%) of UK households save in an ISA, according to a new report.

Analysis from Halifax shows that since 1999-00, when the accounts were introduced, the number of active ISAs has grown by 53 per cent.

Between then and 2006-07, the lender said the number of women using one of the savings vehicles has grown by 52 per cent to 6.3 million. Over the same period, the number of male ISA subscribers has increased by 35 per cent to 6.4 million.

Younger people have adopted the accounts faster than any other group, with the number of ISA holders aged 25 and under growing by 88 per cent from 605,000 to 1.14 million between 1999-00 and 2006-07.

Halifax economist Suren Thiru said the figures demonstrate the "enduring appeal" of ISAs.

"It's encouraging to see that the youngest savers are also keen to benefit from the tax-free status the ISA wrapper offers, with growth highest among the under-25s," he added.

Annual ISA investment is expected to hit £40 billion for the first time in 2009-10, according to the Clydesdale and Yorkshire banks.

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