Isas 'hold enduring appeal with savers'

Wednesday, February 17th 2010

People who save money regularly are particularly keen to lock away these funds in individual savings accounts (Isas), according to a Halifax economist.

Suren Thiru commented that people under the age of 25 are among the most enthusiastic supporters of the tax-free benefits Isas offer, as this demographic has shown the highest growth in the take-up of this type of account.

Research from Halifax indicated that since the 1999-2000 financial year, the number of total Isa accounts has increased by 53 per cent and some 37 per cent of households currently have an account of this type.

It also noted that the value of cash Isa savings has increased "dramatically" within the past decade. While the amount invested in cash deposits stood at £12.3 billion ten years ago, this figure increased to £169.5 billion by the end of December last year.

Penny Shepherd, chief executive of sustainable investment and finance group UKSIF, commented recently that a rising number of savers are also considering ethical and sustainable funds when selecting their investments.

She made her comments following the publication of figures from the Investment Management Association, which indicated that some £5.6 billion is currently invested in green and ethical funds in Britain.