A new report from the Tax Incentivised Savings Association (TISA) shows that Isas are a core savings product for 42% of UK households.
Subscription growth in the ten years since 1999 when ISAs replaced TESSAs and PEPs has been very strong with 15 million people investing £45bn in the 2009/10 tax year alone.
Since 2006 subscription levels have grown by an average of 10% per year and by April 2010 total ISA funds amounted to £350bn, split in broadly equal proportions between Cash and Stocks & Shares ISAs.
Simple Isas appeal to savers
TISA Director General Tony Vine-Lott explained why Isas have proved so popular: ‘A great part of the success of ISAs is due to the simple design and stable rules which have enabled ISAs to become highly valued by investors and providers alike. Such is the strength of the ISA brand that the government is planning a Junior ISA to replace Child Trust Funds and a ‘Social ISA’ to support the ‘Big Society’ initiatives. Providers are also being innovative with Corporate or Workplace ISAs being introduced’.
Paul Davies, savings analyst at Which?, added: ‘The report from TISA is a reminder that you should make sure that you use your Isa allowance before the end of the tax year (5 April 2011). Despite low interest rates there are some good deals out there and companies are keen to provide a home for your savings, for example Skipton BS have just launched a great five-year account‘.
Get the best Isa deals
Make sure that you get the best Isa rates available. There are different types of Isas to meet your various savings requirements. If you don’t know your current Isa rate, use our Savings Booster to find out.
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