Halifax: Isa savings increase sevenfold since 2000

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Halifax: Isa savings increase sevenfold since 2000

Mon 20th Oct 2008

Savings in individual savings accounts (Isas) in the UK have increased sevenfold in value since 2000, according to new research.

Based on data from the Department for Work and Pensions and HM Revenue & Customs, Halifax found that Isas were worth £207.8 billion nationally at the end of the 2007-08 tax year, compared to £28.6 billion in the tax year ending in 2000.

When Isas were first introduced in 1999, 9.3 million were invested in them. In the last tax year, the figure was 14.7 million, a 59 per cent increase.

And the amount invested each year has gone up by 26 per cent in the same period, from £28.4 billion to £35.7 billion.

Martin Ellis, chief economist at Halifax, said that an Isa is "the principal tax-free savings vehicle for most people and an essential element of their financial planning".

Last week, Halifax found that children in the Greater London borough of Harrow have the highest savings balances in the UK.

They averaged £2,193 compared to the national figure of £1,049.

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